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The following present value factors are provided for use in this problem: Periods Present Value of $1 at 8% Present Value of an Annuity of
The following present value factors are provided for use in this problem: Periods Present Value of $1 at 8% Present Value of an Annuity of $1 at 8% 1........ .......0.9259.......... ..0.9259 .....0.8573.... 2.... 1.7833 2.5771 3... .0.7938.. 4.. .....0.7350..... .3.3121 Norman Company wants to purchase a machine for $40,000, but needs to a earn an 8% return. The expected year-end cash flows are $12,000 in each of the first 3 years, and $16,000 in the fourth year. What is the machine's net present value (NPV) (round to the nearest whole dollar)
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