[Solved] A new machine will cost $ 1 0 0 , 0 0 0 a

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A new machine will cost $ 1 0 0 , 0 0 0 and generate after - tax cash inflows of $ 3 5 6

A new machine will cost $

100, 000

and generate after

-

tax cash inflows of $

356, 000

for four years. Find the NPV if the firm uses a

12

percent opportunity cost of capital. What is the IRR? What is the payback period?

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