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Using the present value tables in Exhibits 26-3 and 26-4, Assume that the required rate of return for capital investments at Knorr Foods is 12
Using the present value tables in Exhibits 26-3 and 26-4, Assume that the required rate of return for capital investments at Knorr Foods is 12 percent. The Produce Department has proposed an investment in refrigeration equipment with a 10-year life. The present value of its expected annual cash flows is $84,000. The equipment costs $90,000 and its estimated salvage value is $8,000. Will this capital investment satisfy Knorrs required rate of return? Note: Round your "PV factors" to 3 decimal places. multiple choice Yes No
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