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Mona's Monograms ls considering whether to purchase a new monogram ming machine. Mona calculates that its current machine generates $8,000 of cash flow per year.
Mona's Monograms ls considering whether to purchase a new monogram ming machine. Mona calculates that its current machine generates $8,000 of cash flow per year. A new machine would cost $25,000 and would provide cash flow of $12,000 per year for seven years, what is the equivalent annual cash flow for the new machine (Do not round intermediate calculations and round your final answer to the nearest dollar), and should Mona purchase the new machine? Assume the cost of capital for Mona is 10 percent. $6,865, do not purchase the new machine since the current machine generates more cash flow s4,000, purchase the new achine since the current machine generates more cash flow $8,429, purchase the new machine since the current machine generates more cash flow $8,000, do not purchase the new machine since the current machine generates more cash flow
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