Question: =+EX 26-13 Net present value method and present value index obj. 3 b. Packing Machine, 1.18 Chapter 26 Capital Investment Analysis 1205 Great Plains

=+EX 26-13 Net present value method and present value index obj. 3

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b. Packing Machine, 1.18 Chapter 26 Capital Investment Analysis 1205 Great Plains Transportation Inc. is considering acquiring equipment at a cost of

$246,000. The equipment has an estimated life of 10 years and no residual value. It is expected to provide yearly net cash flows of $61,500. The company’s minimum desired rate of return for net present value analysis is 10%.

Compute the following:

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