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ACCOUNTING 2037-The McKenzie Company is considering buying

The McKenzie Company is considering buying a machine that would increase the company’s cash receipts by $2,200 per year for five years. Operation of the machine would increase the company’s cash payments by $100 in each of the first two years, $200 in the third and fourth years, and $300 in the fifth year. The machine would cost $6,000 and would have a residual value of $500 at the end of the fifth year.A)Compute the present value of the cash receipts and cash payments for the first five years. Assume a required rate of return of 16%.B)Compute the present value of the cash payment today. Assume a required rate of return of 16%.C)Compute the net present value of the investment. Assume a required rate of return of 16%.

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