DCR Limited is considering the purchase of a new machine at a cost of $100,000...

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Accounting

  1. DCR Limited is considering the purchase of a new machine at a cost of $100,000 and an expected useful life of 6 years, at which time it could sell for $8,000. The machine is expected to generate net cash inflows of $21,500 each one of six years. 

  2. Using a discount rate of 5%, what is the NPV for this project?

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