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Business, 12.04.2021 20:20 iyeshaik

Exron Corp. is considering the purchase of a new machine costing $300,000. The new machine will expand Exron's sales capacity and provide $90,000 in additional annual cash flows (before taxes) over the next five years. The company has decided to depreciate the machine using the straight-line method and no salvage value. At the end of the five years, Exron expects to sell the machine for $20,000. Exron has a 40% tax rate and uses a 10% discount rate to evaluate the purchase of new machines. What is the machine's net present value (rounded to nearest dollar)

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