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A company is considering buying a new machine that will expand the company’s product lineup. The machine costs $1.1 million and will generate cash flows of $300,000 per year for next five years. Assume that the cost of capital is 10%.

Find the net present value (NPV) of buying the machine. Answer: $______________ .

And find the internal rate of return (IRR) of buying the machine. Answer: ______________%

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91591405

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