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Extreme Company is planning to invest in a new machine costing $90,000 which will provide the following cash flows: A. Using a discount rate of

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Extreme Company is planning to invest in a new machine costing $90,000 which will provide the following cash flows: A. Using a discount rate of 12%, compute the following: 1. Present value of cash inflows 2. Net present value of the cash flows B. What is the profitability index of the investment? C. Assume that Extreme Company's investment in a new machine will provide an annual cash inflow of $20,000 for 5 years. What is the payback period of the investment? D. What is the payback period of the investment if the above cash inflows are considered

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