Find the net present value of the machine purchased

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Reference no: EM131881676

A machine can be purchased for $1 million. It will generate cash flows of $200,000 at the end of each year for the next 10 years.

However, a $300,000 overhaul will be required at the end of year 5. The cost of capital is 10%.

What is the net present value?

Reference no: EM131881676

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