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Rover Company is analyzing a special investment project. The project will require the purchase of two machines for $35,000 and $9,000 (both machines are
Rover Company is analyzing a special investment project. The project will require the purchase of two machines for $35,000 and $9,000 (both machines are required). The total residual value at the end of the project is $1,800. The project will generate cash inflows of $10,000 per year over its 12-year life. If the company requires a 8% return, what is the net present value (NPV) of this project? Present Value of $1 Period 6 8. 10 12 Present Value of Annuity of $1 Periods 6 A. $31,360 B. $32,075 C. $9,842 OD. $8,420 8 10 12 4% 6% 8% 0.790 0.705 0.630 0.731 0.627 0.540 0.676 0.558 0.463 0.625 0.497 0.397 4% 6% 8% 5.242 4.917 4.623 6.733 6.210 5.747 8.111 7.360 6.710 9.385 8.384 7.536
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