Calculate the total present value of the cash inflows

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Question - DON Corp. is contemplating the purchase of a machine that will produce net after-tax cash savings of $27,000 per year for 5 years. At the end of five years, the machine can be sold to realize after-tax cash flows of $5,400. Assuming a 11% discount rate, calculate the total present value of the cash inflows and the cash savings from the machine.

Reference no: EM133137259

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