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P12.1 (Payback, ARR, and NPV) Brenda Blair is considering buying a Bobcat for her construct tion business; the machine costs $250,000. Purchasing the Bobcat will

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P12.1 (Payback, ARR, and NPV) Brenda Blair is considering buying a Bobcat for her construct tion business; the machine costs $250,000. Purchasing the Bobcat will provide incremental cash flows of $51,000 per year for six years. The salvage value at the end of five years is expected to be nil. Brenda's cost of capital is 14%

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