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The management of London Corporation is considering the purchase of a new machine costing $750,000. The company's desired rate of return is 6%. In addition
The management of London Corporation is considering the purchase of a new machine costing $750,000. The company's desired rate of return is 6%. In addition to this information, use the following data in determining the acceptability in this situation:
Year Income from Operations Net Cash Flow
1 $37,500 $187,500
2 37,500 187,500
3 37,500 187,500
4 37,500 187,500
5 37,500 187,500
The net present value for this investment is:
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