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Book & Bible Bookstore Desires to Buy a New Coding

question 124

Essay

Book & Bible Bookstore desires to buy a new coding machine to help control book inventories.The machine sells for $36,586 and requires working capital of $4,000.Its estimated useful life is five years and will have a salvage value of $4,000.Recovery of working capital will be $4,000 at the end of its useful life.Annual cash savings from the purchase of the machine will be $10,000.Ignore income taxes.Required:
a.Compute the net present value at a 14 percent required rate of return.
b.Compute the internal rate of return.
c.Determine the payback period of the investment.


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Career Opportunities

Potential positions of employment or paths in professional development available to individuals within various fields.

School or Work Community

A group of individuals associated with an educational institution or workplace, often sharing common goals or interests.

Own Judgment

The act of making decisions or forming opinions based on one's own beliefs, values, and experiences, independently of external influence.

Power to Change

The ability or capacity to make or bring about significant alterations or modifications.

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