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Machine cost $80,000. Depreciation is calculated using straight line over 4 years. Every year the machine increases cash flow by $32,000 After 3 years the

Machine cost $80,000. Depreciation is calculated using straight line over 4 years.

Every year the machine increases cash flow by $32,000

After 3 years the machine is sold for $30,000.

Rate of discount is 8%

Tax rate is 36%

What is the NPV of installing machinery?

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