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A company is considering using the compound interest method of depreciation for a piece of equipment...

A company is considering using the compound interest method of depreciation for a piece of equipment costing $100,000, having an estimated AATCF in year one of $25,000, and an estimated IRR of 27% which positively compares to the target rate of return of 12%. The compound interest method of depreciation that would be reported for year one would be:

Group of answer choices

$13,000 positive

$13,000 negative

$2,000 negative

$2,000 positive

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Expert Solution

ekkarill92 answered 2 years ago
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