Question: Kingston Corp. is considering a new machine that requires an initial investment of $750,000 installed, and has a useful life of 15 years. The expected

Kingston Corp. is considering a new machine that requires an initial investment of $750,000 installed, and has a useful life of 15 years. The expected annual after-tax cash flows for the machine are $97,000 for each of the 15 years and nothing thereafter. a. Calculate the net present value of the machine if the required rate of return is 13 percent. b. Calculate the IRR of this project.

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