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Compute the new machines net present value. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount
Compute the new machines net present value. (Any cash outflows should be indicated by a minus sign. Use the appropriate table to determine the discount factor(s) and final answers to the nearest whole dollar amount.)
Now | 1 | 2 | 3 | 4 | 5 | |
Purchase of machine | ||||||
Annual net cash inflow | ||||||
replacement parts | ||||||
salvage value of machine | ||||||
total cash flows | ||||||
discount factor 15% | ||||||
present value | ||||||
net present value |
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