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A company can buy a machine that is expected to have a three-year life and a $44,000 salvage value. The machine will cost $1,685,000
A company can buy a machine that is expected to have a three-year life and a $44,000 salvage value. The machine will cost $1,685,000 and is expected to produce a $214,000 annual income to be received at the end of each year. Annual depreciation expense is $566,000 per year. If a table of present values of $1 at 14% shows values of 0.8772 for one year, 0.7695 for two years, and 0.6750 for three years, what is the net present value of the cash flows from the investment, discounted at 14% ? Multiple Choice $155,626 $556.200 $600,210 $684,216 $1,840,626
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