What is the internal rate of return and net present value

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Robert purchased a new copy machine for his business. The copy machine was purchased for $12,500 and is expected to generate the following cash flows for the next four years:

Assume the copy machine can be sold for $1800 at the end of year 4.

What is the net present value?

What is the internal rate of return?

Should the machine be purchased?

Reference no: EM131308837

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