Question: Big Kevin Limited uses a two year discounted payback method to evaluate capital expenditures and a 10% discount rate. Should the firm purchase a machine

Big Kevin Limited uses a two year discounted payback method to evaluate capital expenditures and a 10% discount rate. Should the firm purchase a machine that would cost $240,000 if it is forecasting the below incremental cash inflows from this expenditure:

year 1 $125,000

year 2 $130,000

year 3 $140,000

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