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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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