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#5: Your company has been awarded a 6-year contract to produce merchandise for your client. The machine that you use can only be used for

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#5: Your company has been awarded a 6-year contract to produce merchandise for your client. The machine that you use can only be used for 2 years before it needs to be replaced. The cashflows associated with these 2 years is shown below. What is the NPV of the full 6-year contract if your company has a required return of 11% ? Assume the cashflows do not change over the full 6 years

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