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A company is considering a $157,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments.
A company is considering a $157,000 investment in machinery with the following net cash flows. The company requires a 10% return on its investments. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net Cash Flow Year 1 $9,000 Year 2 $27,000 Year 3 $52,000 Year 4. $39,000 Year 5 $105,000 (a) Compute the net present value of this investment. (b) Should the machinery be purchased?
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