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What is the maximum price gannon should pay

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Question - Gannon Company is considering purchasing a machine. The machine will produce the following cash flows: Year 1 $60,000 Year 2 $90,000 Gannon requires a minimum rate of return of 10%. What is the maximum price Gannon should pay for this machine?

a. $64,462.95.

b. $150,000.00.

c. $128,925.90.

d. $75,000.00.

Reference no: EM131794782

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