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A company is considering expanding their production capabilities with a new machine that costs $55,000 and has a projected lifespan of 6 years. They estimate
A company is considering expanding their production capabilities with a new machine that costs $55,000 and has a projected lifespan of 6 years. They estimate the increased production will provide a constant $10,000 per year of additional income. Money can earn 1.1% per year, compounded continuously. Should the company buy the machine? Yes, the present value of the machine is greater than the cost by v $ over the life of the machine
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