The net present value of potential investment

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Reference no: EM131963745

A machine would cost $100,000 today. Starting from next year, it would generate $25,000 revenue per year and cost $7,000 per year for operations and maintenance. The machine would last 10 years with no salvage value and your MARR is 6% annual rate compounded annually. What is the net present value of this potential investment? Should you invest in this machine? Give one sentence answer for why or why not.

Reference no: EM131963745

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