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Cost of new machinery $ 200,000 Salvage value after 5 years 20,000 Annual net cash inflow 50,000 Useful life 5 years Cost of capital 14%

Cost of new machinery $ 200,000 Salvage value after 5 years 20,000 Annual net cash inflow 50,000 Useful life 5 years Cost of capital 14% Ignore income taxes Based on the above information, this company should (accept or reject) this investment proposal ____________ due to its net present value of $ ________

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