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Marist Sails Co. is considering the purchase of a new sewing machine to make sails for high performance racing yachts and this new product would

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Marist Sails Co. is considering the purchase of a new sewing machine to make sails for high performance racing yachts and this new product would complement its existing product line of sails for cruising and leisure sailin The first estimates assumes that expected annual cash inflows from this project will be $130,000 based on a net initial investment of $379,000. The machine has a life of five vears. Marist requires a rate of return of 8% A. Compute the following:- The NPV .The IRFR . The Payback B. How different would be your answer if you were told that the CCA on the machine is 20% and the effective tax rate is 40%

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