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Benz Company Is Considering the Purchase of a Machine That

Question 152

Multiple Choice

Benz Company is considering the purchase of a machine that costs $100,000 and has a useful life of 18 years.The company's required discount rate is 12%.If the machine's net present value is $5,850,what must be the annual cash inflows associated with the machine,rounded to the nearest whole dollar,do not round your intermediate calculations? (Ignore income taxes in this problem.)


A) $13,760.
B) $14,601.
C) $42,413.
D) They are impossible to determine from the data given.

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