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Zeb 8 Brothers, Inc. is considering a new project requiring a special custom tuck investment of $24.000 The tuck will last for 3 years and

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Zeb 8 Brothers, Inc. is considering a new project requiring a special custom tuck investment of $24.000 The tuck will last for 3 years and estimated to produce the larg ret terras two tom Year Cash Flow $ 12,000 14.000 2. 18.000 $44.000 The equipment's salvage value is zero. Ken uses straight-line depreciation Ken will not accept any equipment with a cash paytack period on 2 vens kans restored its of stunt REQUIRED a. Compute the equipment's payback period is the equipment investment des table? Explain why or why not. SHOW AL. COMPUTATIONS b. Compute the net present value of the equipment investment. Does your acceptance or rejection of the project you dcted in as above change? Antworten des represent one method? Discuss clearly SHOW ALL COMPUTATIONS Use the following table to assist you, PV of an Annuity Year of 1 at 10% Present Value 1 2 3 909 826 751 of at 10 909 1730 2487

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