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NPV for varying costs of capitalLePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of $340,000 and will generate after-tax
NPV for varying costs of capitalLePew Cosmetics is evaluating a new fragrance-mixing machine. The machine requires an initial investment of
$340,000 and will generate after-tax cash inflows of $62,250 per year for 8 years. If the cost of capital is
11%,
calculate the net present value (NPV) and indicate whether to accept or reject the machine.
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