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A small industrial machine costs $80,000 and is expected to earn annual net cash inflows of $35,200, $32,000, $28,800 and $25,600, before it wears out
A small industrial machine costs $80,000 and is expected to earn annual net cash inflows of $35,200, $32,000, $28,800 and $25,600, before it wears out sufficiently to be unreliable and must be sold for an estimated $8,000.
a) If funds earn 10 per cent, what is its NPV?
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