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Acme Company is interested in buying a new machine that costs $500 000 It is protected that sates (or the first year will be $350,000

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Acme Company is interested in buying a new machine that costs $500 000 It is protected that sates (or the first year will be $350,000 and will increase each year by 15% Variable costs are estimated to be 60% of sales with a onetime repair cost of $25,000 in year 4 The machine will have a useful Me of 5 part, in the tax rate = 33% and the discount rate is 10% Using the valuation tools you've learned (payback, discounted payback, NPV, IRR, PI), recommended if the company should invest in this machine

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