Question 2) A Company is planning to buy a new machinery for 175.000 dollars. This machinery will create cash inflows in a five-year period (economic life) as follows. There is no expected salvage value of machinery at the end its economic life. 1 50.000 dollars 2 60.000 3 65.000 4 40.000 5 30.000 a) Calculate the pay back period. b) Calculate the net present value (Assume the discount rate of the company is 10%) c) Make your decision and explain: Why?

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