(Solution) - Management is considering the purchase of a new machine for -(2025 Original AI-Free Solution)

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Management is considering the purchase of a new machine for a cost of $12,000. It is estimated that the machine will generate positive net cash flows of $3,000 per year for five years and will have a disposal price at the end of that time of $1,000. Assuming an interest rate of 9 percent, determining if management should purchased the machine. Use tables 1 and 2 in the appendix on present value tables to determine the net present value of the new machine.