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A new machine costing $1,000,000 will yield cash savings of $300,000 each year for five years. In addition, it is anticipated that the new machine
A new machine costing $1,000,000 will yield cash savings of $300,000 each year for five years. In addition, it is anticipated that the new machine will increase productivity and that the company will experience an increase in contribution margin as a result. What annual dollar inflow from increased contribution margin would the company have to experience to make the machine an acceptable investment if the minimum desired rate of return is 20%
a | $34,336.34 | |
b | $64,298.73 | |
c` | $19,795.33 | |
d | $86,249.52 |
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