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A firm is buying a new machine that has the following cash-flows during its expected life of 4 years: Purchase Price = $250,000, Terminal Value
A firm is buying a new machine that has the following cash-flows during its expected life of 4 years: Purchase Price = $250,000, Terminal Value = $100,000, and yearly cash flows of $60,000. The firm has a contract with a buyer who purchases and pays the product that the machine makes at the beginning of each year. What is the expected yield of the machine?(%)
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