A corporation is considering purchasing a machine that costs USD100,000 and has a USD20,000 salvage value. The machine will provide net annual cash inflows of USD25,000 per year and has a six-year life. The corporation uses a discount rate of 10%. The discount factor for the present value of a single sum six years in the future is 0.564. The discount factor for the present value of an annuity for six years is 4.355. What is the net present value of the machine?
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