2. Alta Cohen is considering buying a machine to produce baseballs. The machine costs $10,000. With the

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2. Alta Cohen is considering buying a machine to produce baseballs. The machine costs $10,000. With the machine, Alta expects to produce and sell 1,000 baseballs per year for $3 per base hall , net of all costs. The machine's life is five years (with no salvage value) . On the basis of these assumptions and an 8% discount rate, what is the net present value of Alta's investment?

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Investments

ISBN: 9788120321014

6th Edition

Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey

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