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A company has a decision to make between two investment alternatives. The company requires a 10% return on investment. Predicted data is provided below: The present value of an annuity for 6 years at 10% is 4.3553. This company uses straight-line depreciation. Required:

(a) Calculate the net present value for each investment.

(b) Calculate the payback for each investment.

(D) What is the annual cash flow?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9948093

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