What was the net present value

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Stealers Wheel Co. invested in a machine with a 5-year useful life and no salvage value. It generates an annual net cash inflow of $1,000, after taxes (and after any tax shields). The machine was depreciated using the straight-line method. Assuming the minimum acceptable rate of return was 12% and an initial investment of $3500, what was the net present value?

Reference no: EM132052717

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