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What is the purchase price of the machine

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Question - Your Company purchased a machine with an estimated useful life of 6 years. The machine will generate cash inflows of $96,000 each year. The salvage value at the end of the project is $80,000. Your Company's discount rate is 8%. The net present value of the investment is ($5,000). What is the purchase price of the machine?

a. $489,208

b. $494,208

c. $468,208

d. $499,208

Reference no: EM133024298

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