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The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $380,000. The investment is expected to generate $205,000
The Zeron Corporation wants to purchase a new machine for its factory operations at a cost of $380,000. The investment is expected to generate $205,000 in annual cash flows for a period of four years. The required rate of return is 20%. The old machine can be sold for $60,000. The machine is expected to have zero value at the end of the four-year period. What is the net present value of the investment? Would the company want to purchase the new machine? Income taxes are not considered. O A. $210,540; yes O B. $241,000; no O C. $41,000; no OD. $320,000; yes
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