ompany is interested in buying a new machine that costs $500,000. year 1 ncf = 126,800  year 2 ncf = 160,670  year 3 ncf = 155,731  year 4 ncf = 144,916  year 5 ncf = 183,065  and the discount rat

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Chapter1: Investments: Background And Issues
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ACME Company is interested in buying a new machine that costs $500,000.

year 1 ncf = 126,800 

year 2 ncf = 160,670 

year 3 ncf = 155,731 

year 4 ncf = 144,916 

year 5 ncf = 183,065 

and the discount rate is 10%. Using the valuation tools, (payback, discounted payback, NPV, IRR, PI), recommend if the company should invest in this machine.

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