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5. Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $268,000 per year and will
5. Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $268,000 per year and will have a 10 year useful life. The machine is currently priced at $1,350,000. The cost of the machine will decrease by $75,000 per year until it reaches $900,000 where it will remain. Your required return is 13%, should you purchase the machine? And when?
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