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1) A company purchases a new manufacturing machine that results in an initial outflow of $10,000. The resultant cash inflows are expected to be: o

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1) A company purchases a new manufacturing machine that results in an initial outflow of $10,000. The resultant cash inflows are expected to be: o $6,000 at the end of year 1 o $4,000 at the end of year 2 o $4,000 at the end of year 3 Assuming an internal required rate of return of 10%, what is the: a) Payback period b) Discounted payback period c) NPV d) IRR e) Profitability Index

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