Define the net present value

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Reference no: EM131552281

A machine can be purchased for $1 million. It will generate cash flows of $200,000 at the end of each year for the next 10 years. However, a $300,000 overhaul will be required at the end of year 5. The cost of capital is 10%. What is the net present value?

Reference no: EM131552281

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