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Dolly Company Is Contemplating Three Different Equipment Investments

question 6

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Dolly Company is contemplating three different equipment investments.The relevant data follows:
Dolly Company is contemplating three different equipment investments.The relevant data follows:    The present value factor of an ordinary annuity for 10 periods at 12% is 5.6502. The present value factor of one for 10 periods at 12% is 0.322. Required:  A)Compute the net present value of each investment.Ignore income taxes. B)If only one investment can be acquired,which investment should be chosen? The present value factor of an ordinary annuity for 10 periods at 12% is 5.6502.
The present value factor of one for 10 periods at 12% is 0.322.
Required:
A)Compute the net present value of each investment.Ignore income taxes.
B)If only one investment can be acquired,which investment should be chosen?

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