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Question 2 (1 point) Jacob manages a cloth manufacturing firm. He is deciding whether or not to invest in new machinery. The machinery costs
Question 2 (1 point) Jacob manages a cloth manufacturing firm. He is deciding whether or not to invest in new machinery. The machinery costs $45,000 today and is expected to increase cash flows in the first year by $25,000 and in the second year by $30,000. The firm's accrued fixed costs are $2800. If the interest rate (cost of capital) is 15% then what is the net present value of the investment? -576.56 1840.09 2826.09 26.09 99
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