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Category > Accounting Posted 14 May 2017 My Price 5.00

Magic Corporation, an amusement park

BE12-3 Magic Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $136,000 and have an estimated useful life of 5 years. It will be sold for $65,000 at that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $25,000. The com- pany’s borrowing rate is 8%. Its cost of capital is 10%. Calculate the net present value of this project to the company.

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Alpha Geek
(8)
Status NEW Posted 14 May 2017 12:05 PM My Price 5.00

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file 1494766650-1356823_1_636302406884882477_1356823.xlsx preview (112 words )
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