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Author Question: Soda Manufacturing Company provides vending machines for soft-drink manufacturers. The company has ... (Read 73 times)

Chloeellawright

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Question 1

Net present value is calculated using which of the following?
◦ internal rate of return
◦ required rate of return as a discount rate
◦ risk-free rate
◦ predetermined overhead cost rate

Question 2

Soda Manufacturing Company provides vending machines for soft-drink manufacturers. The company has been investigating a new piece of machinery for its production department. The old equipment has a remaining life of five years and the new equipment will cost $99,825 with a five-year life. The expected additional cash inflows are $25,000 per year. What is the internal rate of return?
◦ 8%
◦ 12%
◦ 6%
◦ 4%


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Marked as best answer by Chloeellawright on Mar 6, 2021

Alyson.hiatt@yahoo.com

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Chloeellawright

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Reply 2 on: Mar 6, 2021
Excellent


Sarahjh

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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