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4) The BKB Company is considering purchasing a machine for their manufacturing assembly operations. The machine would cost $150,000 and have no salvage value. It

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4) The BKB Company is considering purchasing a machine for their manufacturing assembly operations. The machine would cost $150,000 and have no salvage value. It would allow them to assemble their product with one less direct labor person. The salary of one assembler for the next three years would be $55,000, $57,500 and $60,000. If they use a discount rate of 6.00% what is the NPV and should they accept the project?! Cash Flow Factor PV Year 0 (today) Year 1 Year 2 Year 3 NPV Accept: Yes No

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