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Question 160

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Use the information below to answer the following question(s) .
Sommer 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:
Use the information below to answer the following question(s) . Sommer 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:    Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero. -The net present value of the Sommer Corporation equipment is closest to A)  $(13,810) . B)  $2,302. C)  $13,810. D)  $15,000. Sommer Corporation's hurdle rate is 12%. Assume the residual value is zero.
-The net present value of the Sommer Corporation equipment is closest to


A) $(13,810) .
B) $2,302.
C) $13,810.
D) $15,000.

Correct Answer:

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