Question: You are considering purchasing a machine that is expected to produce the following cash flows: $ 5 8 comma 0 0 0 5 8 ,

You are considering purchasing a machine that is expected to produce the following cash flows:
$58 comma 00058,000
in year1,
$79 comma 00079,000
in year2,
$67 comma 00067,000
in year3,
$55 comma 00055,000
in year4, and
$41 comma 00041,000
in year 5. If your interest rate is
1212%,
what would be your maximum offer(purchase price) on this machine?

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