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A company is considering purchasing a $ 1 0 , 0 0 0 machine that will reduce pretax operating costs by $ 3 , 0

A company is considering purchasing a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year period. Assume no changes in net working capital and a zero scrap value after five years. For simplicity, assume straight-line depreciation to zero, a marginal tax rate of 20%, and a required return of 10%. The net present value of acquiring this machine is:
Group of answer choices
$83.
$614
$10,083.
$10,614.

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