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Rambus Inc

Question 66

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Rambus Inc.would like to purchase a production machine for $325,000.The machine is expected to have a life of three years,and a salvage value of $50,000.Annual maintenance costs will total $12,500.Annual savings are predicted to be $112,500.The company's required rate of return is 12 percent.
Ignoring the time value of money,calculate the net cash inflow or outflow resulting from this investment opportunity.

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