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QUESTION 7 Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $280,584, plus installation fees of $13,814 and will generate

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QUESTION 7 Mystic Beverage Company is considering purchasing a new bottling machine. The new machine costs $280,584, plus installation fees of $13,814 and will generate earning before interest and taxes of $74,555 per year over its 5-year life. The machine will be depreciated on a straight-line basis over its 5-year life to an estimated salvage value of 0. Mystic's marginal tax rate is 0%. Mystic will require $34,792 in NWC if the machine is purchased. Determine the annual cash flow in year 3 if the machine is purchased. round your answer to two decimals QUESTION 8 You have been offered a unique investment opportunity. If you invest $738 today, you will receive $296 one year from now, $991 two years from now, and $1,659 three years from now. What is the NPV of the opportunity if the cost of capital is 8% per year

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