4. If the cost of capital is 8%, will a company that that would pay...

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Accounting

4. If the cost of capital is 8%, will a company that that would pay $100,000 investment in equipment in year 0, and then receives $16,000 per year each of the next eight years (but no salvage value) make the investment?

multiple choice 4

  • No

  • Yes

5. What would the net cash flows (not discounted) for a company that makes a $100,000 investment in year 0, and then receives $16,000 per year each of the next eight years?

multiple choice 5

  • $100,000

  • $28,000

  • $0

  • $128,000

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