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Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value.
Vandezande Inc. is considering the acquisition of a new machine that costs $370,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are [Ignore income taxes}: Incremental Net Operating Incremental Income Net Cash Flows Year 1 $54,999 $128,999 Year 2 $31,999 $195,999 Year 3 $52,999 $126,999 Year 4 $49,999 $123,999 Year 5 $48,999 $122,999 ' Click here to view Exhibit 79-1 and Exhibit 78-2, to determine the appropriate discount factos] using the tables provided. Assume cash flows occur uniformly throughout a year except for the initial investment. If the discount rate is 10%, the net present value of the investment is closest to
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