A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans
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A machine costs $980,000 to purchase and will provide $200,000 a year in benefits. The company plans to use the machine for 13 years and then will sell the machine for scrap, receiving $20,000. The company interest rate is 12%. Should the machine be purchased?
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P the first cost 980000 F the salvage value 20000 AB the annual benefit ...View the full answer
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