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A machine has estimated annual net cash flows of $22,000 for four years and is estimated to cost $70,000. Assume the company’s minimum acceptable rate of return is 12%. Using the net present value method, determine whether the machine should be purchased.

Cost of new equipment = $70,000

Expected Useful Life = 4 years

Minimum acceptable rate = 12%

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M958210

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