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Beta Manufacturing is considering investing in new machinery costing $75,000. The projected cash inflows are given below: Year Cash Flows 0 -75,000 1 25,000 2

Beta Manufacturing is considering investing in new machinery costing $75,000. The projected cash inflows are given below:

Year

Cash Flows

0

-75,000

1

25,000

2

20,000

3

30,000

4

25,000

If the company’s discount rate is 7%, should Beta Manufacturing purchase the machinery based on the NPV method? Show the calculation

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