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Data for Federated Products Are Compute the Net Present Value of the Machine Assuming the
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Question 40

Multiple Choice

Data for Federated Products are:  Investment in new machinery $19000 Net annual cash inflows 2800 Salvage value of the new machinery 6000 Life of the new machinery 10 years \begin{array} { l r } \text { Investment in new machinery } & \$ 19000 \\\text { Net annual cash inflows } & 2800 \\\text { Salvage value of the new machinery } & 6000 \\\text { Life of the new machinery } & 10 \text { years }\end{array} Compute the net present value of the machine assuming the cost of capital is 8% ignore taxes.


A) $5134
B) $212)
C) $212
D) $2567

Correct Answer:

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