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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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