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2. Pan American Bottling Company is considering the purchase of new machine that would increase the speed of bottling and save money. The net cost

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2. Pan American Bottling Company is considering the purchase of new machine that would increase the speed of bottling and save money. The net cost of the machine is $45,000. Following are the projections of annual cash flow for 5 years Year Annual Cash Flows 1 $15,000 2 20,000 25,000 10,000 5,000 What is the NPV of new machine of cost of capital is 10 percent? 3 4

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