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A company has a decision to make between two investment

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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.

(c) Which investment should this company select? Explain.

(D) What is the annual cash flow?

Reference no: EM13570516

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