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Martinez Corporation is planning to buy a new machine, with the expectation that this investment should earn a rate of return of at least 15%.
Martinez Corporation is planning to buy a new machine, with the expectation that this investment should earn a rate of return of at least 15%. This machine, which costs $277,500, would yield an estimated net cash flow of $55,500 per year for 10 years.
What is the net present value for this proposal?
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