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Business, 12.02.2021 08:30 kell22wolf

3. KIP, LLC is looking to make a 250,000 investment into a new five year production project. The company expects that their investment will generate $80,000 for the first three years and $65,000 for each of the remaining years of the project. At the end of the five years, the firm will be able to have a salvage of $20,000. If the company’s expected rate of return is 15% should the new production project be adopted? Does the decision change if the required rate of return changed to 18%? By using the simple payback method, how long before the company recoups its original investment?

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3. KIP, LLC is looking to make a 250,000 investment into a new five year production project. The com...
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