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Business: Future and Present Values for Decision Making A company consid - ers buying a machine that will increase its annual net income by an
Business: Future and Present Values for Decision Making A company consid
ers buying a machine that will increase its annual net income by an esti
mated $ per year for the next years. Over the next years, company
economists believe the money they invest from that continuous stream will
earn The future and present values of this stream over the next years
are $ and $ respectively. If the cost of the machine is
$ should the company buy the machine or invest the present value of
the machine?
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