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Your firm is considering the purchase of a new machine with an initial cost of $3 million. The machine would increase your firms cash flows

  • Your firm is considering the purchase of a new machine with an initial cost of $3 million. The machine would increase your firms cash flows by $500,000 per year for the first three years and by $1.5 million per year for the final two years of its life. If your required return is 14.50% should you purchase the machine?A.Yes
  • B.No
  • C.Not enough information (or time) to answer

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