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2) A company is considering purchasing a machine that costs $ 200 000, and will produce annual cash flows of $ 85 000 for four
2) A company is considering purchasing a machine that costs $ 200 000, and will produce annual cash flows of $ 85 000 for four years. The machine is expected to be sold at the end of four years for $ 26 000. What is the net present value of the proposed investment ? The company requires a 12 percent return on all capital investments.
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