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The ABC Co

Question 252

Multiple Choice

The ABC Co. is considering the purchase of a $249,000 piece of equipment. This equipment is expected to produce cash flows of $78,500, $149,000, and $80,000 over the next three years. The rate of return on this equipment is:


A) 9.88%
B) 11.26%
C) 12.50%
D) 15.23%
E) 23.49%

Correct Answer:

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