Discuss any ethical concerns with the type of transaction

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Reference no: EM132529713

As the owner of the Cookie Business, you are considering the following investment:

Purchase of new equipment $250,000.00

Expected annual increase in sales $48,017.50

Time frame 7

Acceptable rate needed 9%

Calculate the Internal Rate of Return:

PV of annuity factor 5.206

Internal rate of return 8%

Accept or reject Reject

Question 1: Additional information has come to your attention regarding the equipment purchase. One of the partner's brother owns the company that sells the equipment and insists the equipment is needed. Discuss any ethical concerns you see with this type of transaction.

Reference no: EM132529713

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