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Boston Company is contemplating the purchase of a new machine on which the following information has been gathered: Cost of the machine Annual cash inflows
Boston Company is contemplating the purchase of a new machine on which the following information has been gathered: Cost of the machine Annual cash inflows expected Salvage value Life of the machine $38.900 $10,000 $5,000 6 years The company's discount rate is 16%, and the machine will be depreciated using the straight line method. Given these data, the machine has a net present value of Multiple Choice ($26,100) 50 $26.100
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