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Posted on Sep 05, 2024

A machine costs $ 2 5 0 , 0 0 0 to purchase and will provide $ 6 0 , 0 0 0 a year

A machine costs $

250, 000

to purchase and will provide $

60, 000

a year in benefits. The company plans to use the machine for

12

years and then will sell the machine for scrap, receiving $

15, 000 .

The company interest rate is

10 % .

What is the net present worth?

(

The answer is NOT $

163, 601)

Please show me how to get the answer using algebra.

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