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Cause Company is planning to invest in a machine with a cost of $75,000, a useful life of five years, and no salvage value. The
Cause Company is planning to invest in a machine with a cost of $75,000, a useful life of five years, and no salvage value. The machine is expected to produce cash flow from operations of $20,000 in each of the five years. Causes required rate of return is 10%. Calculate the net present value of the machine. Should the company purchase the machine? Why or why not?
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