Generro Company is considering the purchase of equipment that would cost $54,000 and offer annual...
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Generro Company is considering the purchase of equipment that would cost $54,000 and offer annual cash inflows of $15,100 over its useful life of 5 years. Assuming a desired rate of return of 8%, is the project acceptable? (PV of $1 and PVA of S1) Note: Use appropriate factor(s) from the tables provided. Multiple Choice The answer cannot be determined. No, since the negative net present value indicates the investment will yield a rate of return below the desired rate of return. Yes, since the investment will generate $75,500 in future cash flows, which is greater than the purchase cost of $54,000. Yes, since the positive net present value indicates the investment will earn a rate of return greater than 8%
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