Opportunity to buy a machine

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The Whitton Company uses a discount rate of 16%. The company has an opportunity to buy a machine now for $18,000 that will yield cash inflows of $10,000 per year for each of the next three years. The machine would have no salvage value. The net present value of this machine to the nearest whole dollar is:

A. $22,460

B. $4,460

C. $(9,980)

D. $12,000

Reference no: EM13127815

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