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Question 41. The firm is considering the purchase of a new machine. The machine costs $31,500 and will produce an after-tax cash flow of $5481
Question 41. The firm is considering the purchase of a new machine. The machine costs $31,500 and will produce an after-tax cash flow of $5481 per year at the end of each of the next 9 years. The disposal of equipment will generate an additional cashflow after tax of - $500 at year 9. If the discount rate is 12%, what is the net present value ( NPV) of this investment?
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