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1. Taffy Industries is considering purchasing equipment costing $60,000 with a 6year useful life. The equipment will provide cost savings of $14,600


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1.  Taffy Industries is considering purchasing equipment costing $60,000 with a 6-year useful life. The equipment will  provide cost savings of $14,600 and will be depreciated straight-line over its useful life with no salvage value. Taffy  Industries requires a 10% rate of return.                     Present Value of an Annuity of 1 Periods   8%   9%   10%   11%   12%   13% 6   4.623   4.486   4.355   4.231   4.111   3.784 What is the approximate net present value of this investment? 2.  In using the internal rate of return method, the internal rate of return factor was 4.0 and the equal annual cash  inflows were $40,000. The initial investment in the project must have been A:$40,000. B:$10,000. C:$160,000. D:an amount which cannot be determined.
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