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A machine will cost $30,000 to purchase. Annual operating and maintenance (O&M) will be $2,000. The machine will save $10,000 per year in labor costs.

A machine will cost $30,000 to purchase. Annual operating and maintenance (O&M) will be $2,000. The machine will save $10,000 per year in labor costs. The salvage value of the machine after 5 years will be $7,000. Calculate the machines present worth for an interest rate of 10%. use factors or formulas and draw the cash flow diagram.

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