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2. A manufacturer can automate a certain process by replacing 20 employees with a machine. The employees each earn N$ 24 000 per year, with
2. A manufacturer can automate a certain process by replacing 20 employees with a machine. The employees each earn N$ 24 000 per year, with the payments on the last day of each month, with no salary increases scheduled for the next 4 years. If the machine has a lifetime of 4 years and interest is at a monthly rate of 0.75%, what is the most the manufacturer would pay for the machine (on the first day of the month) in each of the following cases? (1) The machine has no scrap value at the end of 4 years, (b) The machine has scrap value of N$ 200 000 after 4 years, (e) The machine has scrap value of 15% of its purchase price at the end of 4 years. 141
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