Question: Landry's Tool Supply Corporation is considering purchasing a machine that costs $100,000 and will produce annual cash flows of $40,000 for five years. The machine

Landry's Tool Supply Corporation is considering purchasing a machine that costs $100,000 and will produce annual cash flows of $40,000 for five years. The machine is expected to be sold at the end of five years for $12,000. What is the net present value of the proposed investment? Landry's requires a 15 percent return on all capital investments.

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