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TB MC Qu. 12-61 (Static) Net present value (NPV) of the investment: Bulid Corporation Build Corporation wants to purchase a new machine for $300,000. Management

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TB MC Qu. 12-61 (Static) Net present value (NPV) of the investment: Bulid Corporation Build Corporation wants to purchase a new machine for $300,000. Management predicts that the machine can produce sales of $200,000 each year for the next 5 year. Expenses are expected to include direct materlak, direct labor, and factory overhead (excluding depreciation) totaling 580,000 per yeat. The firm uses straighwine depreclation with no residual value for all depreciable assets. Bullos combined income tax rate is 40 s Manngement requlies a minimum athertax rate of retum of 10% on al investments. What is the net present value (NPV) of the imvestment, rounded to the nearest whole doflor? (The PV anmity factoc for 5 years, 10x is 3.791] Assume that the cash inflow occur at yearend

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