Question
A firm is considering an unusual project of the selling of a machine today that will result in an immediate inflow of $480. Without the
A firm is considering an unusual project of the selling of a machine today that will result in an immediate inflow of $480. Without the use of the machine the firm will incur an annuity of outflows of $69 per year that begin at the end of year one, and continue for 4 consecutive years. The required rate of return is 7.60%. What is the project's net present value (NPV)? $ Place your answer in dollars and cents. If your answer is negative, then indicate this by placing a "minus" sign before the number. Do not use a dollar sign or comma. For example, an answer of negative one thousand one hundred and eleven dollars as -1111. Work your analysis using at least 4 decimal places of accuracy.
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