Question: Problem #3 (10 points) A new machine will cost $100,000 and generate after-tax cash inflows of $35,000 for four years. Find the NPV if the
Problem #3 (10 points) A new machine will cost $100,000 and generate after-tax cash inflows of $35,000 for four years. Find the NPV if the firm uses a 12% opportunity cost of capital. a. What is the payback period? And b. If all projects must have a payback less than three years, should you do the project? Focus
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