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Find what is the net present value of the investment

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Question 1: Dr. John Davis has decided to purchase a new lab machine. He has calculated that he will earn an additional incremental income of $50,000 a year over the life of the machine (5 years). The machine costs $150,000. Assume an interest cost of 7%. What is the payback period? What is the Net Present Value of the investment?

Reference no: EM132496299

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