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Baldock Inc

Question 19

Multiple Choice

Baldock Inc. is considering the acquisition of a new machine that costs $420,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are: Baldock Inc. is considering the acquisition of a new machine that costs $420,000 and has a useful life of 5 years with no salvage value. The incremental net operating income and incremental net cash flows that would be produced by the machine are: Assume cash flows occur uniformly throughout a year except for the initial investment. If the discount rate is 12%, the net present value of the investment is closest to: A) $330,000 B) $539,365 C) $119,365 D) $420,000 Assume cash flows occur uniformly throughout a year except for the initial investment. If the discount rate is 12%, the net present value of the investment is closest to:


A) $330,000
B) $539,365
C) $119,365
D) $420,000

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