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Accounting

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pts 2 of 2 (1 complete) HW Score: 47.73% milar to) Questio considering the purchase of new equipment that will automate production and thus reduce labor costs. Captain made the d to the new machinery: on to view the information.) f$1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table ements. - Calculate (a) return Requirements kx, and use bilar.) alue. (Round a negative ne value is 0 1. Calculate (a) net present value, (b) payback period, (c) discounted payback period, and (d) internal rate of retum. 2. Compare and contrast the capital budgeting methods in requirement 1. Print Done urchase of new equipment that will automate production and thus reduce labor costs. Captai chinery: formation.) cent Value i x bnuity of $1 ta Data Table - et present ernal rate ofr $141,000 ermediary resent va Cost of the equipment Reduced annual labor costs $45,000 places, X.XX jest whole dol 10 years Estimated life of equipment Terminal disposal value After-tax cost of capital $0 8% Tax rate 35% Assume depreciation is calculated on a straight-line basis for tax purposes. Assume all cash flows occur at year-end except for initial investment amounts. Print Done

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