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Question(s) / Instruction(s):

Boston Company is contemplating the purchase of a new machine on which the following information has been gathered:

Cost of the machine                                       $38,900

Annual cash inflows expected                    $10,000

Salvage value                                                     $5,000

Life of the machine                                         6 years

The company\'s discount rate is 16%, and the machine will be depreciated using the straight-line method. Given these data, the machine has a net present value of:

A.            -$26,100

B.            -$23,900

C.            $0

D.            +$26,100

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