Mid-Town Plumbers Inc. is considering the purchase of a machine costing approximately $6,000. Using a discount rate of 19%, the present value of future cash inflows are calculated to be $6,700. To yield at least an 19% return, the actual cost of the machine should not exceed the $6,000 estimate by more than:
A) $4,000
B) $6,000
C) $800
D) $700
Correct Answer:
Verified
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