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The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present

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The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information use the following data in determining the comptability of this investment: Income from Operations $100,000 40,000 40,000 10.000 10,000 wch Flow $180,000 120,000 100,000 90,000 120,000 The net present value for this investment is Ca. 555.200 b. (126,800) $36,400 d. (16,170)

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