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QUESTION 4 0.4 points Save Answer Jesse's Machining is looking to buy a new machine to handle a new four-year contract for machining windmill blades.

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QUESTION 4 0.4 points Save Answer Jesse's Machining is looking to buy a new machine to handle a new four-year contract for machining windmill blades. The bookkeeper has provided the following information about the project. Jesse, the owner, says he will finance the machine at the local bank, which will charge 11% interest on the four-year loan. The machine requires a $1,500 annual maintenance payment, and will have a scrap value at the end of year four of zero. Year Outflows Inflows 2019 $49,500 2020 $1,500 $15,500 2021 $1,500 $17,775 2022 $1,500 $18,835 2023 $1,500 $19,984 Total $55,500 $72,094 Which of the following is correct? O A. The NPV is $1, 173 O B. The payback period is less than four years O C. The IRR is greater than the loan rate D. All answers are correct. ave all answers

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