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The management of Fine Electronics Company is considering to purchase an equipment to be attached with the main manufacturing machine. The equipment will cost 7000and

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The management of Fine Electronics Company is considering to purchase an equipment to be attached with the main manufacturing machine. The equipment will cost 7000and will increase annual cash inflow by 3000 the working capital 400. The useful life of the equipment is 6 years. After 6 years it will have no salvage value. the equipment at the end the 6 year can be sold for 250 net of taxes The management wants a 20% return on all investments. what is the initial investment what is the total discounted cash flow what is the terminal value what is the net present value Next page

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