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Kendra Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine

Kendra Corporation is involved in the business of injection moulding of plastics. It is considering the purchase of a new computer-aided design and manufacturing machine for $428,200. The company believes that with this new machine it will improve productivity and increase quality, resulting in a $107,200 increase in net annual cash flows for the next five years. Management requires a 10% rate of return on all new investments.Click here to view PV table.

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