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If the initial outlay is $14,000 and the expected net cash flows resulting from a new machine are $9,000 in year 1, $7,000 in the
If the initial outlay is $14,000 and the expected net cash flows resulting from a new machine are $9,000 in year 1, $7,000 in the 2nd year, $5,000 in the 3rd year, and $3,000 in the 4th year. Should the firm purchase this new machine if its cost of capital is 12 percent?
I came up with 5,084 for NPV. would this be correct?
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