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Question 1 Not yet werd Points out of 1.00 ton On January 1, Samsoon Company purchased a new machine for $100,000 to be depreciated over

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Question 1 Not yet werd Points out of 1.00 ton On January 1, Samsoon Company purchased a new machine for $100,000 to be depreciated over 5 years. It will have no salvage value at the end of the five years. For financial accounting and tax purposes, depreciation will be $20,000 per year. The machine is expected to produce annual cash flows from operations, before income taxes, of $40,000. Assume Samsoon uses a discount rate of 12% and that its income tax rate will be 40% for all years. The NPV of the machine should be: Select one: D a. $3.480 negative O b$15.360 negative Oc. $15.360 positive O d. $60,000 positive Next page

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