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16 of 16 < View Policies -/1 1 Current Attempt in Progress Sheridan Co. is considering purchasing a machine that will produce annual savings of
16 of 16 < View Policies -/1 1 Current Attempt in Progress Sheridan Co. is considering purchasing a machine that will produce annual savings of $22500 at the end of the year. Sheridan requires a 11% rate of return and the asset has a 5-year useful life. What is the maximum Sheridan would be willing to pay for this machine? Present Value of Annuity of 1 Period 11% 3.696 Present Value of Period 11% 5 0.593 O $53370 -$83160 O $112500 $66713
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