What is the NPV at the end of the five years

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Question - A new machine for the Woodke Company costs $100,000 and is expected to last 5 years. Annual maintenance costs will be $5,000, and it will reduce other labor costs by $30,000 per year. The company's required rate of return is 8%. What is the NPV at the end of the five years?

a. $117

b. $39,745

c. $119,781

d. Cannot be calculated from information provided.

Reference no: EM132561191

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