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Your friend in mechanical engineering has invented a money machine. The main drawback of the...

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Accounting

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Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $500. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $5,000 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 7.5% per year, what should your friend do? The NPV of the machine is $(Round to the nearest dollar.) What should your friend do? (Select the best choice below.) A. Reject the machine because the NPV is equal to or greater than $0 B. Reject the machine because the NPV is less than $o. C. Accept the machine because the NPV is equal to or greater than $0. OD. Accept the machine because the NPV is equal to or less than $0

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