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Kenner Broom buys a machine for his business. The machine costs $150,000. Kenner estimates that the machine can produce $40,000 cash inflow per year for

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Kenner Broom buys a machine for his business. The machine costs $150,000. Kenner estimates that the machine can produce $40,000 cash inflow per year for the next five years. His cost of capital is 12 percent. Based upon the net present value of this investment, Kenner should invest in the machine. not invest in the machine. invest in the machine if she can get a higher cost of capital. cannot tell without additional information. William LaForge buys a machine for his business. The machine costs $150,000. William estimates that the machine can produce $40,000 cash inflow per year for the next five years. William's cost of capital is 10 percent. What is the approximate profitability index for this investment? 0.91

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