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Dunkin Lab plans to purchase a new centrifuge machine for its Arizona facility. The machine costs $567,000 and is expected to have a useful

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Dunkin Lab plans to purchase a new centrifuge machine for its Arizona facility. The machine costs $567,000 and is expected to have a useful life of 8 years, with a terminal disposal value of $54,000. Savings in cash operating costs are expected to be $108,000 per year. However, additional working capital is needed to keep the machine running efficiently. The working capital must continually be replaced, so an investment of $38,000 needs to be maintained at all times, but this investment is fully recoverable (will be "cashed in") at the end of the useful life. Dunkin Lab's required rate of retum is 8%. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. Dunkin Lab uses straight-line depreciation for its machines. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the req Requirements X Requiremen net present v or a negative 1. Calculate net present value. 2. Calculate internal rate of return. The net pres 3. Calculate accrual accounting rate of return based on net initial investment. 4. Calculate accrual accounting rate of return based on average investment.

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