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Determining the net present value

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Reference no: EM132505664

A business is considering purchasing a piece of new equipment for $100,000. The equipment will generate the following revenues:

Year 1: $50,000

Year 2: $30,000

Year 3: $20,000

Year 4: $10,000

The machine can be sold at the end of the year four for $25,000. Assume a discount of 8%. What is the net present value (NPV)?

Reference no: EM132505664

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