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SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,700,000...

SAT-Corp. is considering the purchase of a new piece of machinery that will cost them $1,700,000 today (in 2010). This piece of machinery will increase the company’s after-tax cash flows by $500,000 in 2011, $750,000 in 2012, $1,000,000 in 2013. If SAT-Corp.’s discount rate (WACC) is 10%, then the NPV of making this purchase is

$125,695

$243,896

-$75,000

$25,000

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jeff jeffy answered 1 year ago
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