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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine's base price is $260,000, and installation costs would amount to

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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine's base price is $260,000, and installation costs would amount to $10.000. An additional $10,000 in net working capital would be required at installation. The machine has a class life of 2 years. The machine would save the firm $225,000 per year in operating costs. The firm is planning to keep the machine in place for 2 years. At the end of the second year, the firm plans to sell the machine for $80,000. The firm has a required rate of return on investment projects of 10% and a marginal tax rate of 2196. What is the NPV of the project? O $139.926 $138.190 $104.705 $138.190 $169,627 Net

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