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The DDB Corporation wants to purchase a new machine for its factory operations at a cost of P 800,000. The investment is expected to generate
The DDB Corporation wants to purchase a new machine for its factory operations at a cost of P 800,000. The investment is expected to generate P 400,000 in annual cash flows for a period of five years. The required rate of return is 10%. The old machine can be sold for P 75,000. The machine is expected to have zero value at the end of the five-year period. Disregard income taxes and depreciation. Compute for net present value of the investment. Kindly help me solve. Thank you.
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