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You Are Considering Buying A Machine That Will Cost You $11,500.

Submitted by • October 9, 2018

You are considering buying a machine that will cost you $11,500. There will be a maintenance cost of $850 at the beginning of each year, and the machine will generate cash flows of $4,750 over the next five years. After the five years, the machine will have no salvage value. What is the NPV of this machine if the cost of capital is 12 percent?

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Voted by Simon Brooke

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