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a company pays $7,000 for a new machine, plans a 10% annual return on the investment, and expects the following annual gains iver the next
a company pays $7,000 for a new machine, plans a 10% annual return on the investment, and expects the following annual gains iver the next six years: year 1: $3,000 year 2-5: $5,000 each year; and year 6 $4000. Compute the net present value (NPV) of this new machine investment
In your answers, you should properly show your work by writing down your entries into the calculator. For instance, if you use the TVM worksheet of your financial calculator to compute how long it takes to double your account balance given 5\% annual interest rate, you should write down your entries as: I/Y=5,PV=1,PMT=0,FV=2,CPTN= ? - - the question mark here stands for your answer to the Step by Step Solution
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