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Forecaster Industries is considering the purchase of a new machine that will cost the company $65,750. The machine is estimated to have a 5 year life and no salvage value. The machine is expected to generate $23,000 of cash inflows each year over the life of the asset. Forecaster's cost of capital is 12%.
-Ignoring income taxes,the net-present-value of the investment in the machine is:
A) $(16,500)
B) $(499)
C) $ 14,614
D) $ 17,160
Correct Answer:
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