Buhler Tractor sold a tractor for $45,000 to Tom Edwards 10 years ago. (a) What is the
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Buhler Tractor sold a tractor for $45,000 to Tom Edwards 10 years ago.
(a) What is the uniform net cash flow that Tom must make each year to realize payback and a return of 5% per year on his investment over a period of 3 years? 5 years? 8 years? All 10 years?
(b) If the net cash flow was actually $5000 per year, what is the amount Tom should have paid for the tractor to realize payback plus the 5% per year return over these 10 years?
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a Calculate capital return CR at a 5 return S 0 n 3 CR 45000AP 5 3 45000036721 ...View the full answer
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