What is the npv of investment-blue co

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Blue Co. can purchase a new machine at a cost of $42,500. The machine is expected to generate cash inflows of $15,000 for 3 years and have a salvage value of $2500 at the end of its useful life.

If Blue Co. has a required rate of return of 6%, what is the NPV of this investment? Based on NPV should Smith Co. purchase this machine? Please provide calculations.

Reference no: EM132986124

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