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Calculate the net present value of a project given the following. Assume the following: Cost of new machine = $400,000 Useful life of new machine
Calculate the net present value of a project given the following. Assume the following:
- Cost of new machine = $400,000
- Useful life of new machine = 5 years
- Disposal value of new machine = $0
- After tax cash flow year 1 = $160,000
- After tax cash flow year 2 = $140,000
- After tax cash flow year 3 = $100,000
- After tax cash flow year 4 = $100,000
- After tax cash flow year 5 = $100,000
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