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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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