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A company is planning to buy a new machine for $908905. The hurdle rate is 14.20%. The economic life of the machine is 8 years,
A company is planning to buy a new machine for $908905. The hurdle rate is 14.20%. The economic life of the machine is 8 years, with no salvage value at the end of its life. What are the minimum annual cash flows that would make the project profitable?
Select one:
a. $64007
b. $113613
c. $197249
d. $109385
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