Find out whether the machine should be purchased

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Reference no: EM13128766

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%

Reference no: EM13128766

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