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Trenton Inc  Year  Annual cash flow 1$80002$60003$3000\begin{array}{cc}\text { Year } & \text { Annual cash flow } \\\hline 1 & \$ 8000 \\2 & \$ 6000 \\3 & \$ 3000\end{array}

question 22

Multiple Choice

Trenton Inc.is considering an equipment purchase that has a cost of $15 000.The equipment is expected to have a salvage value of $2000 at the end of three years.In addition,the equipment is expected to generate cash flows over the next three years as follows:
 Year  Annual cash flow 1$80002$60003$3000\begin{array}{cc}\text { Year } & \text { Annual cash flow } \\\hline 1 & \$ 8000 \\2 & \$ 6000 \\3 & \$ 3000\end{array}

If Trenton's cost of capital is equal to 14 per cent,the net present value of the equipment is: (ignore income taxes)


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Adhesive or non-adhesive strips applied to surfaces to increase traction and minimize the risk of slips and falls, often used in bathrooms and on stairs.

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