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The following answers which one is correct? Or give your answer please Watson Manufacturing has an opportunity to invest $96,000 in a new machine. The

The following answers which one is correct? Or give your answer please

Watson Manufacturing has an opportunity to invest $96,000 in a new machine. The new machine will result in cost savings of $25,000 in year 1, $25,000 in year 2, $25,000 in year 3, $25,000 in year 4, and $25,000 in year 5. The new machine will require a tune-up in year 3 costing $3,000. The salvage value of the machine will be $10,000 at the end of year 5. Watson's cost of capital is 10%. Create a table showing the cash flows in each year of the project and compute the NPV.

0

1

2

3

4

5

96,000

25,000/(1.10)1

25,000/ (1.10)2

25,000/(1.10)3

25,000/(1.10)4

35,000/ (1.10)5

22,727.3

20,661.2

18,782.9

17,075.3

21,732.2

Total PV

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