Question: Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell

Applied Nanotech is thinking about introducing a new surface cleaning machine. The marketing department has come up with the estimate that Applied Nanotech can sell 16 units per year at $307,000 net cash flow per unit for the next four years. The engineering department has come up with the estimate that developing the machine will take a $15.3 million initial investment. The finance department has estimated that a discount rate of 11 percent should be used.

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