Answer the following questions:
•What is the total investment in the new machine at time = 0 (T = 0)?
•What are the net cash flows in each of the 5 years of operation?
•What are the terminal cash flows from the sale of the asset at the end of 5 years?
•What is the NPV of the investment?
•What is the IRR of the investment?
•What is the payback period for the investment?
•What is the profitability index for the investment?
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