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Question 6 On 1/1/X1 X Company purchases a machine. It is expected to bring in $1,000,000 in cash inflows over five years. Assuming a 6%
Question 6 On 1/1/X1 X Company purchases a machine. It is expected to bring in $1,000,000 in cash inflows over five years. Assuming a 6% discount rate, please provide the Present Value of the future cash flows for each of the two alternatives. Show all work: Alternative 1: Cash inflows at end of year 1: $200,000 Cash inflows at end of year 2: $200,000 Cash inflows at end of year 3: $200,000 Cash inflows at end of year 4: $200,000 Cash inflows at end of year 5: $200,000 Present Value of Cash Flows Are (Show all work to Receive any Credit): Alternative 2: Cash inflows at end of year 1: $50,000 Cash inflows at end of year 2: $200,000 $300,000 Cash inflows at end of year 3: Cash inflows at end of year 4: $320,000 Cash inflows at end of year 5: $130,000 Present Value of Cash Flows Are (Show all work to Receive any Credit)
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