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What is the answer to question 12 and 13? Thank you Question 12 1 pts Arizmendi is considering whether to purchase an ovanArizmendi calculates that
What is the answer to question 12 and 13? Thank you
Question 12 1 pts Arizmendi is considering whether to purchase an ovanArizmendi calculates that its current oven generates $3,600 of cash how pur year, A new oven would cost $15,000 and would provide a cash flow of $6,500 per year for ten years. What is the equivalent annual cash flow for the new oven (round to the nearest dollar), and should Arizmendi purchase the new oven? Assume the cost of capital for Arizmendi is 12 percent O $3,145, do not purchase the oven O $3,652, purchase the new oven, $2,345, do not purchase the new oven $3,845, purchase the new oven Question 13 1 pts Which of the first three statements about IRR IS NOT true? The IRR is the discount rate that makes the NPV equals to zero. The IRR is the actual rate of return of a project. On a NPV prohle graph with NPV as the Y-variable and discount rate the X-variable, the IRR is the discount rate where the NPV prohle curve intersects the X-axis. All of the above three statements are true Step by Step Solution
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