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Using your present value of an annuity in arrears table, compute the NPV for the following potential investment: Initial cost $5,000, life of equipment: 5

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Using your present value of an annuity in arrears table, compute the NPV for the following potential investment: Initial cost $5,000, life of equipment: 5 years, annual cash inflow: $1,500, salvage value:0, required rate of return 10%. O The NPV is positive, so this is a good investment. O The NPV is negative, so this is a poor investment. O We do not have enough information to calculate the NPV

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