The cost of capital for the vending machine is 864 percent


A vending machine is expected to produce regular annual cash flows of 59,101 dollars with the first regular cash flow expected later today and the last regular cash flow expected in 9 years from today. In addition to the regular cash flows of 59,101 dollars, the vending machine is also expected to produce an extra cash flow of 65,030 dollars in 10 years from today. The cost of capital for the vending machine is 8.64 percent. What is the value of the vending machine?

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Financial Management: The cost of capital for the vending machine is 864 percent
Reference No:- TGS02760560

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