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Acme Machine Shop, L.L.C. is considering the purchase of a new lathe for $500,000. It will have a life of 5 years. Annual cash inflows

Acme Machine Shop, L.L.C. is considering the purchase of a new lathe for $500,000. It will have a life of 5 years. Annual cash inflows in each of the five years are projected to be $150,000. The clinic uses a 20% discount rate for all capital projects. Should they purchase the machine?

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