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9. The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The

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9. The management of California Corporation is considering the purchase of a new machine costing $400,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Income from Net Cash Year Operations Flow 1 $100.000 $182,000 3 4 5 60.000 20.000 10,000 10,000 175,000 100.000 90,000 90,000 Required: a) What is the net present value of this investment? b) What is the present value index of this investment? c) Explain whether the investment is worthwhile or not, using the analysis you presented above

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