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Aunt Bee is thinking about purchasing a new flam digger for $14,000. The expected net cash flows resulting from the digger are $10,000 in year 1, $8,000 in the 2nd year, $6,000 in the 3rd year, and $2,500 in the 4th year. Should Aunt Bee purchase this digger if its cost of capital is 12 percent?

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