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You are considering purchasing maximum offer (purchase priceonthis machiie? a machine that is expected to produce the following cash flows. S63 000 n ear 1 $71.000 n year 2 $68. 000 in year 3, $54,000 in year 4 and S4 1,000 ın year 5 If your interest rate is 1 1% what would be your

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The solution to the given question is provided below:
Maximum offer price on the machine=63000/1.11+71000/1.11^2+68000/1.11^3+54000/1.11^4+41000/1.11^5=224005.9405

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