Larry's Lawn Service needs to purchase a new lawnmower costing $8,146 to replace an old...
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Larry's Lawn Service needs to purchase a new lawnmower costing $8,146 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 4 years, with no salvage value at the end of that period. Click here to view the factor table. (a) If Larry's required rate of return is 10%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to decimal place, e.3. 58,971.) Annual cash savings should be (b) If Larry's required rate of return is 18%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, eg, 58,971.) Annual cash savings should be $
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