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Rogers company, Inc., is considering purchasing a new grinding machine with a useful life of 5 years. The initial outlay for the machine is $175,000,

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Rogers company, Inc., is considering purchasing a new grinding machine with a useful life of 5 years. The initial outlay for the machine is $175,000, with an additional $25,000 in essential customization. The required rate of return for Dave Company, Inc., is 12.75%. The expected cash flows are as follows: Year/After-tax Expected Cash Flow 1/$30,000 2/$40000 3/$60000 4/$80000 5/$60000 6/$50000 Calculate the Net Present Value of the investment C +$5,139 $6,700 $6,700 $15,139 Rogers company, Inc., is considering purchasing a new grinding machine with a useful life of 5 years. The initial outlay for the machine is $175,000, with an additional $25,000 in essential customization. The required rate of return for Dave Company, Inc., is 12.75%. The expected cash flows are as follows: Year/After-tax Expected Cash Flow 1/$30,000 2/$40000 3/$60000 4/$80000 5/$60000 6/$50000 Calculate the Internal Rate of Return for the investment 11.74% 13.29% 13.82% 15.06%

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