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A machine can be purchased today for $1 million. It will generate cash flows of $200,000 at the end of each year for 10 years.

A machine can be purchased today for $1 million. It will generate cash flows of $200,000 at the end of each year for 10 years. However, a $300,000 overhaul will be required at the end of year 5. At a 10% opportunity cost of money, compute the net present value of this investment.

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