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Boo, Inc. is considering the purchase of a new machine costing $640,000. The machine's useful life is expected to be 8 years with no salvage
Boo, Inc. is considering the purchase of a new machine costing $640,000. The machine's useful life is expected to be 8 years with no salvage value. The straight-line depreciation method will be used. The net increase in annual after -ax cash flow is expected to be $147,000. Boo estimates its cost of capital to be 14%. The net present value of the investment in the machine under consideration is: O $40,520. O $41,933. O $60,480. O $75,160
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