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Palatial Products Inc  Year  Annual cash flow 1$600002$500003$400004$40000\begin{array}{cc}\text { Year }& \text { Annual cash flow }\\\hline1 & \$ 60000 \\2 & \$ 50000 \\3 & \$ 40000 \\4 & \$ 40000\end{array}

question 70

Essay

Palatial Products Inc.is considering the purchase of a new industrial machine.The estimated cost of the machine is $150 000.The machine is expected to generate annual cash inflows for the next four years as follows:
 Year  Annual cash flow 1$600002$500003$400004$40000\begin{array}{cc}\text { Year }& \text { Annual cash flow }\\\hline1 & \$ 60000 \\2 & \$ 50000 \\3 & \$ 40000 \\4 & \$ 40000\end{array}

The machine is not expected to have a residual value at the end of its useful life.The company uses a discount rate of 14 per cent.
Required: Compute the net present value of the machine.(Ignore income taxes)

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Definitions:

Night Terrors

A sleep disorder causing feelings of panic or dread typically occurring during the first hours of stage 3-4 non-REM sleep, and can cause loud screaming and intense fear.

Nightmares

Disturbing dreams that cause the dreamer to wake up feeling anxious and scared.

Manifest Content

The literal content or storyline of a dream, as remembered by the dreamer.

Analyzing a Dream

The process of interpreting the underlying meanings and symbols in a dream, often utilized in psychoanalysis and other psychological therapies.

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