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Figure 14-11. Present Value of an Annuity of $1 in Arrears

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Figure 14-11.
Present value of an Annuity of $1 in Arrears
Figure 14-11. Present value of an Annuity of $1 in Arrears    Refer to Figure 14-11.Aragon Company is considering an investment in equipment that will have an initial cost of $560,290 and yield annual net cash inflows of $90,000.Yearly depreciation will be $56,000.The equipment is expected to be useful for 10 years and then it will be scrapped.Aragon requires a minimum rate of return of 10 percent.   Refer to Figure 14-11.Aragon Company is considering an investment in equipment that will have an initial cost of $560,290 and yield annual net cash inflows of $90,000.Yearly depreciation will be $56,000.The equipment is expected to be useful for 10 years and then it will be scrapped.Aragon requires a minimum rate of return of 10 percent.
Figure 14-11. Present value of an Annuity of $1 in Arrears    Refer to Figure 14-11.Aragon Company is considering an investment in equipment that will have an initial cost of $560,290 and yield annual net cash inflows of $90,000.Yearly depreciation will be $56,000.The equipment is expected to be useful for 10 years and then it will be scrapped.Aragon requires a minimum rate of return of 10 percent.


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