Compute the proposed investment net present value

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Reference no: EM133096959

Question - Flounder Company is proposing to spend $230,000 to purchase a machine that will provide annual cash flows of $44,000 over a 10-year period. The appropriate present value factor for 10 periods is 5.65022.

Required -

1. Compute the proposed investment's net present value.

2. Indicate whether the investment should be made by Flounder Company.

3. Investment select an option (should or should not) be made by Flounder Company.

Reference no: EM133096959

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