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The following present value factors are provided for use in this problem. Periods PV of 1at 8% PV of an annuity of 1 at 8%

The following present value factors are provided for use in this problem.

Periods PV of 1at 8% PV of an annuity of 1 at 8%

1 .9259 .9259

2 .8573 1.7833

3 .7938 2.5771

4 .7350 3.3121

Cliff Co. wants to purchase a machine for $40k but needs to earn an 8% return. The expected year end net cash flows are $12k in each of the first 3 years and $16k in the fourth year. What is the machine's net present value?

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