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The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net
The Pan American Bottling Co. is considering the purchase of a new machine that would increase the speed of bottling and save money. The net cost of this machine is $45,000. The annual cash flows have the following projections. Year Cash Flow 1 $15,000 2 20,000 3 25,000 4 10,000 55,000 What is the net present value of selecting the new machine, assuming cost of capital of 10%? Select one: a. $13,883 b. $11,883 c. $17,883 d. $15,883
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