Dolly Company is contemplating three different equipment investments.The relevant data follows:
The present value factor of an ordinary annuity for 10 periods at 12% is 5.6502.
The present value factor of one for 10 periods at 12% is 0.322.
Required:
A)Compute the net present value of each investment.Ignore income taxes.
B)If only one investment can be acquired,which investment should be chosen?
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