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Business, 26.07.2019 01:20 tifftifftiff5069

The management of river corporation is considering the purchase of a new machine costing $380,000. the company's desired rate of return is 6%. the present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. in addition to the foregoing information, use the following data in determining the acceptability of this investment: year income from operations net cash flow 1 $20,000 $95,000 2 20,000 95,000 3 20,000 95,000 4 20,000 95,000 5 20,000 95,000 the net present value for this investment is a. $19,875 b. $(19,875) c. $20,140 d. $(20,140)

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