G Wagon would like to purchase a printing machine for $315,000. The machine is expected...

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Accounting

G Wagon would like to purchase a printing machine for $315,000. The machine is expected to have a life of three years and a salvage value of $30,000. Annual maintenance costs will total $16,000. Annual cash savings are predicted to be $125,000. G Wagon required rate of return is 12%.

What is the net cash inflow or outflow resulting from this investment opportunity?

Using Excel, compute the net present value (NPV)

What is the NPV that you calculated?

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