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NPV for varying costs of capital LePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $380,000 and will generate
NPV for varying costs of capital
LePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $380,000 and will generate after-tax cash inflows of $62,250
per year for 8 years. If the cost of capital is 14%, calculate the net present value (NPV) and indicate whether to accept or reject the machine.
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