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Amachine costs $300,000 right now and an extra $80,000 a year from now, and is expected to produce the following cash flows: 2 5 Year

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Amachine costs $300,000 right now and an extra $80,000 a year from now, and is expected to produce the following cash flows: 2 5 Year Cash flow (s thousand) $ 50 S 57$ 75$ 80S 85 (continue on next page) 9 9 10 Year Cash flow (s thousand) $ 925 925 80$ 68$ SO Your cost of capital is 8%/year. a What is the project's PB (payback period)? (5 points) b. What is the project's NPV? (15 points) c. What is the project's IRR? (10 points) d. Using NPV, what is your investment decision? (5 points) e Using IRR, what is your investment decision? (5 points)

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