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A machine costs $ 9 8 0 , 0 0 0 to purchase and will provide $ 2 0 0 , 0 0 0 a

A machine costs $980,000 to purchase and will
provide $200,000 a year in benefits. The company
plans to use the machine for 13 years and then will
sell the machine for scrap, receiving $20,000. The
company interest rate is 12%. Should the machine
be purchased?

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