Multiple Choice
Dexter Company is considering purchasing equipment. The equipment will produce the following cash flows:
Year 1 $120,000
Year 2 $200,000
Dexter requires a minimum rate of return of 10%. What is the maximum price Dexter should pay for this equipment?
A) $274,381
B) $165,290
C) $320,000
D) $160,000
Correct Answer:
Verified
Correct Answer:
Verified
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