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Wildhorse Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $12300 for 5 years.

 

Wildhorse Enterprises is considering investing in a new packing machine. The new machine will provide annual cash operating inflows of $12300 for 5 years. The cost of the machine is $42300 and it can be sold at the end of its 5-year useful life for $6800. Wildhorse's required rate of return is 10%. Type of cash flow PV of $1 FV of $1 PV ordinary annuity FV ordinary annuity PV annuity due Periods 5 5 5 5 5 Interest rate 10% 10% 10% 10% 10% Factor 0.6209 1.6105 3.7908 6.1051 4.1699 What is the machine's net present value? (round to the nearest dollar)

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