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The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present

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The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability in this situation: Year 1 2. 3 Income from Operations $18,750 18,750 18,750 18,750 18,750 Net Cash Flow $93,750 93,750 93,750 93,750 93,750 4 5 The net present value for this investment is: Negative $118,145 Positive $19.875 O Negative $19.875 Positive $118,145

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