The Flat Tile Company is contemplating an investment in a new 2500 pound per square inch press. The estimate of the project's price is $250,000. The press will have a life of 8 years and have a salvage value of $25,000. Annual net cash flows from the eight years of operations are expected to be $45,000. If Flat's applicable discount rate is 12%, is the project acceptable? Why or why not?

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The Answer of The Flat Tile Company is contemplating an investment in a new 2500 pound per square inch press. The estimate of the project's price is $250,000. The press will have a life of 8 years and have a salvage value of $25,000. Annual net cash flows from the eight years of operations are expected to be $45,000. If Flat's applicable discount rate is 12%, is the project acceptable? Why or why not?

The Flat Tile Company Is Contemplating an Investment in a New