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The following present value factors are provided for use in this problem. Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121
The following present value factors are provided for use in this problem. Present Value of an Annuity of $1 at 8% 0.9259 1.7833 2.5771 3.3121 Present Value of $1 at 8% 0.9259 0.8573 0.7938 0.7350 Periods 2 3 4 Cliff Co. wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end net cash flows are $12,000 in each of the first three years, and $16,000 in the fourth year. What is the machine's net present value? $42,685. $2,685 $(28,240) $(9.075) $52,000
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