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Ink, Inc. is a printing company considering purchasing a small new color printing press for $ 4 0 , 0 0 0 . The new

Ink, Inc. is a printing company considering purchasing a small new color printing press for $40,000. The new printing press is projected to produce new incremental cash flows of $9,000 per year during the seven-year lifespan of the press. Does spending the $40,000 to purchase the new printing press make financial sense? What is the Net Present Value of the project (the sum of future cash flows minus the upfront cost of the printing press)?

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