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A company is considering the purchase of new equipment costing $75,000. The projected annual after-tax net income from the equipment is $3,200, after deducting $15,000
A company is considering the purchase of new equipment costing $75,000. The projected annual after-tax net income from the equipment is $3,200, after deducting $15,000 for depreciation. The machine has a useful life of 3 years and no salvage value. The company requires an 8% return on its investments. The relevant present value factors for 8% are listed below. What is the present value of the machine? Multiple Choice $13,598. $46,903. $38,657. $13,377. $60,280
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