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Your firm is considering buying a new machine that will have the following estimated cash flows. Your firm's cost of capital is 10 percent. Year

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Your firm is considering buying a new machine that will have the following estimated cash flows. Your firm's cost of capital is 10 percent. Year Net Cash Flow 0 1 - 100 10 2 60 3 80 Should you accept or reject this project using the Net Present Value (NPV) method? Make sure you: 1) draw and label a time line, 2) write down your calculator inputs or the formula that you are using, 3) calculate and report the NPV, and 4) state whether you should accept or reject this project and why. N:B: Show your work. If needed, equations can be written by using the tool bar shown right above the answer text box

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