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You have the opportunity to purchase a machine that has an initial investment cost of $10000. You estimate that this investment will produce an annual
You have the opportunity to purchase a machine that has an initial investment cost of $10000.
You estimate that this investment will produce an annual income of $2500 for 8 years and have a salvage value of $1000.
Assuming you have a cost of credit of 4.1% compounded annually, what is the NPV of this investment?
My answer was wrong at $7,146.42? Thank you
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