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company is considering whether to buy a new machine, which costs 97,000 . The cash flows (adjusted for taxes and depreciation) that would be generated
company is considering whether to buy a new machine, which costs 97,000 . The cash flows (adjusted for taxes and depreciation) that would be generated by the new machine are given in the following table: (a) Find the total present value of the cash flows. Treat each year's cash flow as a lump sum at the end of the year and use an interest rate of $7.5% per year, compounded annually
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