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Question: Ocoee Golf Course is considering the purchase of new equipment that will cost $1,250,000 if purchased today and will generate the following cash disbursements and receipts. Should Ocoee pursue the investment if the cost of capital is 8 percent? Why?

Year	Cash Receipts	Cash Disbursements	Net Cash Flow
1	950,000	500,000	450,000
2	925,000	475,000	450,000
3	800,000	450,000	350,000
4	675,000	430,000	245,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92860557

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