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A new machine costs $400,000 and has a life of 5 years with no salvage value. Annual cash flows generated are described as below: Year

A new machine costs $400,000 and has a life of 5 years with no salvage value. Annual cash flows generated are described as below:

Year Cash Flows

1yr : $120,000

2yr: $160,000

3yr: $200,000

4yr: $240,000

5yr: $280,000

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