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QUESTION
A new machine with an expected useful life of 4 years is expected to generate annual net cash flows of $15,000.
A new machine with an expected useful life of 4 years is expected to generate annual net cash flows of $15,000. What are the (rounded) cash flows worth today if a 3% interest rate properly reflects the time value of money in this situation?
A) $13,327
B) $38,100
C) $39,982
D) $55,757
