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Barton Company can acquire a $870,000 machine now that will benefit the firm over the next 5 years. FV of 1 (i = 10%, n
Barton Company can acquire a $870,000 machine now that will benefit the firm over the next 5 years. FV of 1 (i = 10%, n = 5): 1.611 FV of a series of $1 cash flows (i = 10%, n = 5): 6.105 PV of $1 (i = 10%; n = 5): 0.621 PV of a series of $1 cash flows (i = 10%, n = 5): 3.791 Annual savings in cash operating costs are expected to total $220,000. If the hurdle rate is 10%, the investment's net present value is:
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