Question: A company buys a machine for $200,000. The machine will be depreciated on a straight-line basis over a 10-year period with a salvage value of

A company buys a machine for $200,000. The machine will be depreciated on a straight-line basis over a 10-year period with a salvage value of $50,000. The company expects the machine to generate after-tax net cash inflows of $40,000 in each of the 10 years. At the end of 10 years, the machine is expected to be sold for $50,000. The discount rate is 9%. What is the Net Present Value (NPV) of the machine?

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