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Determine the net present value of this investment

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Question - A machine will cost $45,000 and is expected to generate equal annual cash flows of $15,000 at the end of each of the next five years. In addititon, the machine is expected to have a salvage value of $8,000 at the end of the fifth year. Determine the net present value of this investment, assuming an interest rate of 20%.

A. $(14,850)

B. $(135)

C. $3,081

D. $23,793

Reference no: EM131763471

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