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You work for Toys USA and are evaluating an investment opportunity, which involves buying a machine for $ 9 0 , 0 0 0 today.

You work for Toys USA and are evaluating an investment opportunity, which involves buying a machine for $90,000 today. The project will produce an annual cash inflow of $15,000 for the next 8 years but company also needs to spend $20,000 nine years from now on machine disposal and cleanup costs. The opportunity cost of capital is 12%.
A) What is the NPV of the project?
B) What is/are the IRR(s) of the project? If there more than one IRR, show all IRR solutions.
C) Should you buy the machine? Why or why not? Limit the explanation to no more than 60 words.

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