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5. (10 points) A manufacturing company is considering adding a CNC machine to its operation. The net benefit in the first year is estimated to
5. (10 points) A manufacturing company is considering adding a CNC machine to its operation. The net benefit in the first year is estimated to be $40,000, increasing at the rate $5,000 for the next four years. It then stays at the same level as that of year 5 for the next 5 years. A salvage value of 20% of the initial cost is reasonable to assume at the end of year 10. If MARR machine. is 8% determine the amount of money that the company can justify investing this
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