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Pan American Bottling Company is considering the purchase of new machine that would increase the speed of bottling and save money. The net cost of

Pan American Bottling Company is considering the purchase of new machine that would increase the speed of bottling and save money. The net cost of the machine is $45,000. Following are the projections of annual cash flow for 5 years.

Year Annual Cash Flows

1 $15,000

2 20,000

3 25,000

4 10,000

5 5,000

What is the NPV of new machine of cost of capital is 10 percent?

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