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Core Corp Is Considering the Purchase of a New Machine for for $85,000

question 47

Multiple Choice

Core Corp. is considering the purchase of a new machine for $85,000. The machine would generate an annual cash flow of $25,500 per year for six years. At the end of five years, the machine would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation with no mid-year convention. What is the net present value of the machine, assuming no taxes are paid? (Round your answers to two decimal places.)


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