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Table 11.4
Computer Disk Duplicators, Inc. has been considering several capital investment proposals for the year beginning in 2004. For each investment proposal, the relevant cash flows and other relevant financial data are summarized in the table below. In the case of a replacement decision, the total installed cost of the equipment will be partially offset by the sale of existing equipment. The firm is subject to a 40 percent tax rate on ordinary income and on long-term capital gains. The firm's cost of capital is 15 percent.
*Not applicable
-For Proposal 2, the cash flow pattern for the replacement project is ________. (See Table 11.4)
Resistance Point
The least favorable outcome that a party is willing to accept in a negotiation before walking away.
Target Point
In negotiations, it refers to the best outcome each party hopes to achieve from the negotiation process.
Starting Point
The initial position or condition at the beginning of an activity or process.
Major Concession
A significant compromise or adjustment made by a party in a negotiation, often to reach an agreement.
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