Question: A machine will fetch $1.3 million in cash flows each year for the next 10 years. Also, at the end of the 10th year, you

A machine will fetch $1.3 million in cash flows each year for the next 10 years. Also, at the end of the 10th year, you can sell the machine for $2 million. You require a return of 10% of this investment. What is the maximum you will be willing to pay for this machine today?

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