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Ali, a manager of the plate division for the Marble Top Manufacturing company, has the opportunity to expand the division by investing in additional machinery

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Ali, a manager of the plate division for the Marble Top Manufacturing company, has the opportunity to expand the division by investing in additional machinery costing $420,000. He would depreciate the equipment using the straight-line method, and expects it to have no residual value. It has a useful life of seven years. The firm mandates a required after tax rate of return of 14% on investments. Ali estimates annual net cash inflows for this investment of $125,000 before taxes, and an investment in working capital of $2,500. Tax rate is .35% Calculate the net present value of this .investment Calculate the accrual accounting rate of return on initial investment for this .project

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