The machine is not expected to have a residual value at the

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Reference no: EM13595490

Palmetto Products is considering the purchase of a new industrial machine. The estimated cost of the machine is $50,000. The machine is expected to generate annual cash inflows for the next four years as follows:

Year
Annual cash flow
1$25,000
2$20,000
3$20,000
4$15,000
The machine is not expected to have a residual value at the end of its useful life. If Palmetto uses a discount rate of 16%, what is the expected net present value of the machine? (ignore taxes)

Reference no: EM13595490

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