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An u explain the answer basis over a 10-year period with salvage value of $25,000. The company expects the machine to generate after-tax net cash

An u explain the answer

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basis over a 10-year period with salvage value of $25,000. The company expects the machine to generate after-tax net cash inflows of $30,000 in each of the 10 years. At the end of the 10 years, the machine is expected to be sold for $25,000. The discount rate is eight percent. Present value of $1 for 10 years at 8% 0.463 Present value of an annuity of $1 for 10 years at 8% 6.71 What is the net present value? A. $26,300 B. $37,875 C. $51,300 D. $212,875 Answer: B

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