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You are the financial manager of a firm and you are doing the capital budgeting for a new machine that expands the scale of the

You are the financial manager of a firm and you are doing the capital budgeting for a new machine that expands the scale of the companys existing assets. The machine is expected to generate cash flows of $80,000 at the end of every year over the next 5 years and it requires initial outlays of $50,000. Assume that the firms market value of equity is $200 million, the firms market value of debt is $100 million, the required return on debt is 5%, and the required return on equity is 10%. The corporate tax rate is 21%. Using the WACC, what is the NPV of this new machine (answer in dollars with 2 decimals)?

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