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1 . You are thinking of building a new machine that will save you $ 2 5 0 0 in the first year. The machine

1. You are thinking of building a new machine that will save you $ 2500 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 3% per year forever. What is the present value of the savings if the interest rate is 8% per year?

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