What is the net present value of the project

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Reference no: EM131333499

A company wants to expand by buying another machine in order to produce more products. The machine will cost $27457 and installation costs are expected to be $4624. The machine is expected to generate incremental after-tax cash flows of $9903 in the first year, $13581 in the second year and $16949 in the final year. What is the net present value of the project if the required rate of return is expected to be 13.0%

Reference no: EM131333499

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