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10. The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The

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10. The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for l through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Income from Operations $100,000 60,000 20,000 10,000 10,000 Net Cash Flow $180,000 170,000 100,000 90,000 90,000 Year Required: a) What is the net present value of this investment? b) What is the present value index of this investment

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