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Xavier co. wants to purchase a machine for $37,000 with a for your life and $1000 salvage value. Xavier requires an 8% return on investment.
Xavier co. wants to purchase a machine for $37,000 with a for your life and $1000 salvage value. Xavier requires an 8% return on investment. The expected year and net cash flows are $12,000 in each of the four years. What is the machines net present value (round to the nearest whole dollar)? calculate the net present value of the proposed project. Should the company invest in this machine? Why or why not?
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