Preston company requires a minimum return of 14 on all

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Preston Company requires a minimum return of 14% on all investments. The company can purchase a new machine at a cost of $80,000. The new machine would generate cash inflows of $15,000 per year and have a 12-year useful life with no salvage value. Compute the machine's net present value. Is the machine an acceptable investment?The factor for 12 years at 14% from the present value of an annuity table is 5.660.Show your computations.

Reference no: EM13593228

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