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A machine that costs $50,000 will produce cash flows a $25,000 in year 1, $20,000 in year 2, and $10,000 in year 3. Assume a
A machine that costs $50,000 will produce cash flows a $25,000 in year 1, $20,000 in year 2, and $10,000 in year 3. Assume a 12% required rate of return and discount factors of 0.893 for year 1, 0.797 for year 3 and 0.712 for year 3. What is the NPV?
A. 4,616.89
B. -4,615
C. 4,661.89
D. 4,161.89
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