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(Present Value Tables Are Needed

Question 141

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(Present value tables are needed. ) Mulheim Corporation is deciding whether to automate one phase of its production process.The equipment has a six-year life and will cost $410,000.Projected net cash inflows from the equipment are as follows:
(Present value tables are needed. ) Mulheim Corporation is deciding whether to automate one phase of its production process.The equipment has a six-year life and will cost $410,000.Projected net cash inflows from the equipment are as follows:   Mulheim Corporation's hurdle rate is 12%.Assume the residual value is zero. What is the net present value of the equipment? A) $(18,275)  B) $3,046 C) $20,000 D) $18,275
Mulheim Corporation's hurdle rate is 12%.Assume the residual value is zero.
What is the net present value of the equipment?


A) $(18,275)
B) $3,046
C) $20,000
D) $18,275

Correct Answer:

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