Doodabble Company is considering the purchase of production equipment that costs $960000. The equipment is...
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Accounting
Doodabble Company is considering the purchase of production equipment that costs $960000. The equipment is expected to generate an annual cash flow of $280000 and have a useful life of 7 years with no salvage value. The firm's cost of capital is 11 percent. The straight-line method with no mid-year convention is used.
40 Ignoring income taxes, the net present value of the project is
A $359,400
B $1,000,000
C ($212,200)
D $212,200
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