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Bob manufacturing is considering purchasing a new machine for $140,000 that has a useful life of 10 years and a $10,000 salvage value. Bob uses
Bob manufacturing is considering purchasing a new machine for $140,000 that has a useful life of 10 years and a $10,000 salvage value. Bob uses straight-line depreciation. The machine is expected to generate net positive cash inflows of $24,500 per year. what is the net present value of the machine if the company has a cost of capital of 12%? will Bob accept or reject this project?
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