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Vista Company wants to replace one of its older production machines. The estimated cost is $180,000. Using a discount rate of 18%, the company calculates

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Vista Company wants to replace one of its older production machines. The estimated cost is $180,000. Using a discount rate of 18%, the company calculates a net present value of the new machine to be negative $10,000. Based on this information which of the following statements is true? O None of the answer choices is correct. The internal rate of return on the truck is negative. The guaranteed rate of return on the new purchase is 18%. The use of a higher discount rate would cause the net present value to be positive. The net present value will be positive if the actual purchase price is less than $170,000

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