Required rate of return-net present value

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Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,322, $863,275, $937,250, $1,019,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment?

An investment of $83 generates after-tax cash flows of $46.00 in Year 1, $66.00 in Year 2, and $135.00 in Year 3. The required rate of return is 20 percent. The net present value is

Reference no: EM13874682

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