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ucas Company is considering investing in a new machine. The machine costs $14,300 and has an economic life of four years. The hachine will generate

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ucas Company is considering investing in a new machine. The machine costs $14,300 and has an economic life of four years. The hachine will generate cash flows of $4,200 (cash revenues less cash expenses) each year. All cash flows, except for the initial vestment, are realized at the end of the year. The investment in the machine will be made at the beginning of the first year. Lucas is ot subject to any taxes and, for financial accounting purposes, will depreciate the machine using straight-line depreciation over four rears. Lucas uses a 10 percent cost of capital when evaluating investments. Use Exhibit A 9 . Required: a. Calculate the accounting income for the total over four years. b. Compute the NPV of the cash fows over four years. (Round PV factor to 3 decimal places. Negative amount should be indicated by a minus sign. Round your answer to the nearest whole dollar amount.)

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