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Bella Company is considering a long-term capital investment project in laser equipment....

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Accounting

Bella Company is considering a long-term capital investment project in laser equipment. This will require an investment of $500,000, and it will have a useful life of 10 years. Annual net income is expected to be $35,000 a year. Depreciation is computed by the straight-line method with no salvage value. The companys cost of capital is 12%.(Assume cash flows can be computed by adding back depreciation expense.)
Instructions (Round all computations to two decimal places.)

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