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A New Machine Will Cost $100,000 and Generate After-Tax Cash

Question 35

Essay

A new machine will cost $100,000 and generate after-tax cash inflows of $35,000 for 4 years. What is the minimum rate of return the project must earn to be acceptable? Prove that your rate is correct.

Correct Answer:

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Using a financial calculator:
n = 4; PV ...

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