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Determine Net Present Value, No Residual Value Florence Kundrat owns Discount Fashions. She is contemplating the purchase of a soda machine which would be used
Determine Net Present Value, No Residual Value Florence Kundrat owns Discount Fashions. She is contemplating the purchase of a soda machine which would be used to sell soft drinks to customers for $0.75 each. The following estimates are available: Initial outlay $3, 500 Annual cash inflow $1,000 Cost of capital 10% Estimated life of the soda machine 5 years Estimated residual value of the soda machine $0 REQUIRED: Determine the net present value of the soda machine purchase
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