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A Discounted Cash Flow is a required calculation to comply with many GAAP regulations. Cam Bowls Soup Company purchased a new machine in the production
A Discounted Cash Flow is a required calculation to comply with many GAAP regulations. Cam Bowls Soup Company purchased a new machine in the production of their Souperman Spoons for a cost of $460,000 + sales tax of 6.5% + notary fee of $51.55 totals $489,951.55 The following shows the Net Cash Flow of: 1. Not purchasing the new equipment 2. Purchasing the equipment 2. Year No purchase Yes purchase 1 $156,600 $68,198.84 $165,300 $374,100 3 $174,000 $378,400 $182,700 $382,800 $191,400 $387,200 Calculate the discounted cash flow for each scenario with an interest rate of 7.17% What is the NPV of buying the equipment vs not purchasing the equipment? What is the Cash Payback in Years for the purchase in question #1? Attach work on last question This question is worth 7 total points 2.126 years 2.327 years 2.966 years 3.000 years
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