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Wayfare is contemplating investing in a new computer system. The system will cost $ 3 7 5 , 0 0 0 with a salvage value
Wayfare is contemplating investing in a new computer system. The system will cost $ with a salvage value of $ at the end of its useful life of years. The equipment is expected to generate additional annual cash inflows with the following probabilities for the next years:
ProbabilityCash Flow$
A What is the expected cash flow?
B If Wayfares' cost of capital is what is the expected net present value?
C Do you recommend Wayfare invest in the new computer system?
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