Question: Q20 Morehead LLC is purchasing a new machine for $180,000. The new machine would generate cash flows of $100,000 for each of the next three

Q20

Morehead LLC is purchasing a new machine for $180,000. The new machine would generate cash flows of $100,000 for each of the next three years. Morehead uses a discount rate of 15%. What is the net present value?

a. $40

b. $48

c. $50

d. $58

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