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Calculate the Net Present Value of the Investment a. -$1,153 b. -$1,733 c. $1,733 d. $1,153 Quantum Corp. is considering purchasing a new milling machine

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Calculate the Net Present Value of the Investment

a. -$1,153

b. -$1,733

c. $1,733

d. $1,153

Quantum Corp. is considering purchasing a new milling machine with a useful life of 6 years. The initial outlay for the machine is $20,000. The required rate of return for Quantum Corp. is 12.75% (WACC). The expected cash flows are as follows: Year After-tax Expected Cash Flow 1 $3.000 2 $4.000 3 $6,000 4 $8,000 5 $8,000 6 -$1,000

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