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Vineyard Company Is Proposing to Spend $138000 to Purchase a Machine

Question 55

Essay

Vineyard Company is proposing to spend $138000 to purchase a machine that will provide annual cash flows of $25000. The appropriate present value factor for 10 periods is 5.65.
Instructions
Compute the proposed investment's net present value and indicate whether the investment should be made by Vineyard Company.

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The investment shoul...

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