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Saved Help Save & Exit Poe Company is considering the purchase of new equipment costing $88,000. The projected net cash flows are $43,000 for the
Saved Help Save & Exit Poe Company is considering the purchase of new equipment costing $88,000. The projected net cash flows are $43,000 for the first two years and $38,000 for years three and four. The revenue is to be received at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of $1 and present value of an annuity of $1 for different periods is presented below. Compute the net present value of the machine Periods Present Value of $1 at 101 0.9091 0.8264 0.7513 0.6830 Present Value of an Annuity of $1 at 10 0.9091 1.7355 2.4869 1699
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