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Coyne Corporation is evaluating O p portunity. This project would require an investment of $35.000 D o life of the equipment
0 Data Table Present Value of $1 Periods 3 1 10% 0.751 0.683 0.621 0.564 12% 0.712 0.636 0.567 0.507 14% 0.675 0.592 0.519 0.
Data Table Present Value of Annuity of $1 - Periods 10% 3 2.487 3.170 12% 2.402 3.037 3.605 4.111 14% 2.322 2.914 3.433 3.889
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Answer #1

The answer is A $24109

Discounting factor is 10%.

Initial Cost = $35000

Present vale of cash inflows = ($18000 x 3.170) + (3000 x 0.683) = $59109

NPV = Pv of cash intflows - Pv of cash outflows = $59109 - $35000 = $24109

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