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PLEASE SOLVE USING CALCULATOR HP 10 BII + SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,800,695 today
PLEASE SOLVE USING CALCULATOR HP 10 BII +
SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,800,695 today (in 2010). This piece of machinery, however, will increase the companys after-tax cash flows by $500,000 in 2011, $750,000 in 2012, $1,000,000 in 2013. If SAT-Corp.s discount rate (WACC) is 10%, then the NPV of making this purchase is
a. $449,305
b. $243,896
c. $25,000
d. -$1,760,000
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