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Calculate the net present value

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Reference no: EM131411808

Yalken Corporation is considering the purchase of a new machine. The cost of the machine is $250,000. The cash flows for five years are given below.

Year 1

Year 2

Year 3

Year 4

Year 5

Cash flows

$84,790

$102,500

$70,580

$64,760

$115,700

The company is in the 35 percent tax bracket. Assuming that the cost of capital is 12%, calculate the net present value.

  • $64,463
  • $(64,452)
  • $204,394
  • $314,452

Reference no: EM131411808

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