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Tall Oaks Corp. is considering a new machine that requires aninitial investment of $480,000 installed, and has a useful life of8 years. The expected annual after-tax cash flows for the machineare $89,000 for each of the 8 years and nothing thereafter. a.Calculate the net present value of the machine if the required rateof return is 11 percent. b. Calculate the IRR of this project. c.Should Tall Oaks accept the project (assume that it is independentand not subject to any capital rationing constraint)? In your ownwords, explain your answer
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