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A company is considering purchasing a new machine for $100,000. The machine has a useful life of 5 years and is expected to generate net

A company is considering purchasing a new machine for $100,000. The machine has a useful life of 5 years and is expected to generate net cash inflows of $25,000 per year. The company uses straight-line depreciation and has a cost of capital of 8%. What is the net present value (NPV) of the machine investment? Should the company invest in the machine? Show all calculations.

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