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Company X is considering the purchase of a machinery that would result in the following net cash inflows: End of Year 1 2 3 4
- Company X is considering the purchase of a machinery that would result in the following net cash inflows:
End of Year 1 2 3 4 5
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Net Cash Inflow $5,000 4,000 3,000 2,000 1,000 The required rate of return for a project of this risk is 15%. What would the price of the machine have to be for the company just to break-even on the investment?
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