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3. Management is considering the purchase of a new machine for a cost of $65,000. It is estim ated that the machine will generate positive
3. Management is considering the purchase of a new machine for a cost of $65,000. It is estim ated that the machine will generate positive net cash flows of $12,000 per year for eight years and will be sold for salvage at the end of that time for $2,500. Assuming a return of 9% compounded annually, determine if management should purchase this machine by finding the present value of the future cash flows
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