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**Bonus calculation Questions (5 Marks)** Calculate the present value of the investment in a machine...

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**Bonus calculation Questions (5 Marks)** Calculate the present value of the investment in a machine with a 5 year ife span. It will generate profit in the following way: $1000 at the end of year 1. $1500 at the end of year 2, $2600 and the end of the 3rd year, 53000 at the end of the 4th year and finally has a salvage value of $1,000 at the end of the Sth year. Assume a discount rate of 13% If the investor requires a 10% rate of return at what price would it be appropriate to purchase this asset? a. Any price below $6,233 b. At any Price below $5,609 c At a price Equal to $6,233 d. Any price above $6.233

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