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A corporation is considering purchasing a machine that will save $ 2 0 0 , 0 0 0 per year before taxes. The cost of

A corporation is considering purchasing a machine that will save $200,000 per year before taxes. The cost of operating the machine, including maintenance, is $70,000 per year. The machine, costing $180,000, will be needed for five years after which it will have a salvage value of $35,000. If the firm wants a 14% rate of return before taxes, what is the net present value of the cash flows generated from this machine?
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