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i need help finding this problem out the rate of return is 10% Chovita Motors Corp. is evaluating a machine that costs $100,000. The machine
i need help finding this problem out
the rate of return is 10%
Chovita Motors Corp. is evaluating a machine that costs $100,000. The machine is expected to generate net income equal to $30,000, $90,000, and $50,000, respectively, during the next three years. The machine's annual depreciation expense will be $5,000, $3,000, and $2,000, respectively. In three years, the machine will have a salvage value equal to zero. In question 8, the projection for the machine cost is accurate to within 15%. It is harder to accuratel predict net income so the projection for net income is accurate to within + 30%. The annual depreciation expenses are, however, the same as forecasted in question 8. Everything else is the same. Calculate the best case and worst case NPV Step by Step Solution
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