The purchase requires an initial investment

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The purchase requires an initial investment of $24,000 and will generate cash inflows of $5,000 per year for eight years. For each of the required rates of return listed (1) calculate the net present value, (2) indicate whether to accept or reject the machine, and (3) explain your decision.

The cost of capital is 10%.

The cost of capital is 12%.

The cost of capital is 14%.

Reference no: EM131588087

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