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The expected improvements from the new machine would allow for an increase in membership fees. The CFO expects cash flows from the investment in the

The expected improvements from the new machine would allow for an increase in membership fees. The CFO expects cash flows from the investment in the first three years to be $89,000, $91,000, and $101,000. The company is subject to a 40% tax rate and has a required rate of return of 15% for all investment projects. The current required rate of return of 15% per year does not include an adjustment of 2% for inflation. Calculate the real rate of return.The CFO has asked you to recalculate the NPV of the investment using the real rate of return

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