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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $180 per year and forever. The

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $180 per year and forever. The machine is currently priced at $2,000. The cost of the machine will decline by $25 per year until it reaches $1,800, where it will remain. If your required return is 8%, should you purchase the machine? If so, when should you purchase it? What is the value of option to wait?

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