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A currently used machine costs $6,500 annually to run. What is the maximum that should be paid to replace the machine with one that will
A currently used machine costs $6,500 annually to run. What is the maximum that should be paid to replace the machine with one that will last 5 years and will cost only $2,500 annually to run? The opportunity cost of capital is 3 %.
The maximum amount that should be paid is:
$
(please round your final result to 2 decimals, but keep as many decimals as possible during calculation)
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