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The management of London Corporation is considering the purchase of a new machine costing $750,000. The company's desired rate of return is 6%. In addition to this information, use the following data in determining the acceptability in this situation:

Year Income from Operations Net Cash Flow

1 $37,500 $187,500

2 37,500 187,500

3 37,500 187,500

4 37,500 187,500

5 37,500 187,500

The net present value for this investment is:

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92416505

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