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ABC is now thinking about to purchase a new machine. The iniatial cost will be $293,255 . For the next 3 years ( start with
ABC is now thinking about to purchase a new machine. The iniatial cost will be $293,255 . For the next 3 years ( start with next year) the meachine will have $131,968 of OCF each year. At the end of the third year, The machine can be sold for $98,635. Discount rate is 12%.
1. Calculate the net present value index for the machine.
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