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NPV Anaylsis of a Project Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $26,000 and will generate after-tax

NPV Anaylsis of a Project

Dane Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $26,000 and will generate after-tax cash inflows of $6,000 per year for 8 years. If the cost of capital is 11%, (1) calculate the net present value (NPV) and (2)indicate whether to accept or rejected the machine, and (3) explain your decision. Comment

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