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A company is considering the purchase of new equipment for $105,000. The projected annual net cash flows are $41,000. The machine has a useful life
A company is considering the purchase of new equipment for $105,000. The projected annual net cash flows are $41,000. The machine has a useful life of three years and no salvage value management of the company requires an 8% return on investment the present value of annuity of $1 for previous periods follows: What is the net present value of this machine (rounded to the nearest whole dollar) assuming all cash flows occur at year-end? Multiple Choice $103,084 $5.000 $661 $35.000 $40.000
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