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Beverage Manufacturing Company is evaluating a plan to possibly update their machinery. The expected cost is $550,000, that is payable immediately. The expected reduction in

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Beverage Manufacturing Company is evaluating a plan to possibly update their machinery. The expected cost is $550,000, that is payable immediately. The expected reduction in cash outflow at the end of each year is as follows: Years 1-4 $80,000 each year Year 5 $60,000 The interest rate is nine percent. Wwhat is the net present value of this investment in new machinery? Disregard the effect of depreciation and taxes. $53,125. O-$46,340. e $39,125. e -$75.254. Beverage Manufacturing Company is evaluating a plan to possibly update their machinery. The expected cost is $550,000, that is payable immediately. The expected reduction in cash outflow at the end of each year is as follows: Years 1-4 $80,000 each year Year 5 $60,000 The interest rate is nine percent. Wwhat is the net present value of this investment in new machinery? Disregard the effect of depreciation and taxes. $53,125. O-$46,340. e $39,125. e -$75.254

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