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A company is deciding whether to invest in a vending machine at a cost of 2,500. It is expected to produce positive net cash inflows

  1. A company is deciding whether to invest in a vending machine at a cost of 2,500. It is expected to produce positive net cash inflows of 1,000 a year for each of the next 3 years (residual value = nil). The business uses a discount rate of 10% and the discount factors are shown in the table below.

    Year

    10% discount factors

    0

    1.0000

    1

    0.9091

    2

    0.8264

    3

    0.7513

    What is the Net Present Value of the vending machine investment?

    A.

    14

    B.

    minus 14

    C.

    1,500

    D.

    minus 1,500

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