Rennin Dairy Corporation is considering a plant expansion decision that has an estimated useful life of 20 years. This project has an internal rate of return of 15% and a payback period of 9.6 years. How would a decrease in the expected salvage value from this project in 20 years affect the following for this project? Internal Rate of ReturnPayback PeriodA)DecreaseDecreaseB)No effectDecreaseC)DecreaseNo effectD)IncreaseNo effectE)No effectNo effect
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer: C
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What will be an ideal response?
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a. True b. False Indicate whether the statement is true or false
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Answer the following statement true (T) or false (F)