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Use this information for Wyoming Corporation to answer the question that follow. The management of Wyoming Corporation is considering the purchase of a new
Use this information for Wyoming Corporation to answer the question that follow. The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for five years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment: Year 1 Income from Operations $18,750 Net Cash Flow $93,750 2 18,750 93,750 3 18,750 93,750 4 18,750 93,750 5 18,750 93,750 The average rate of return for this investment is Oa. 15% Ob. 5% Oc. 10% Od. 25%
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