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com Saved Help Save &ExitSub LO 10) Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500

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com Saved Help Save &ExitSub LO 10) Poe Company is considering the purchase of new equipment costing $81,500. The projected net cash flows are $36,500 for the and $31,500 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of SI for different periods is presented below. Compute the net present value of the machine. Present Value Present Value of an Periodsof $1 at 108 Annuity of $1 at 10 0.9091 0.8264 0.7513 0.6830 0.9091 1.7355 2.4869 3.1699 Multiple Choice $(18,986). $(7612). $18.986 $7612

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