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Blossom Manufacturing is considering the purchase of new computerized equipment. The machine costs $68000 and would generate $17600 in annual cost savings over its 5-year
Blossom Manufacturing is considering the purchase of new computerized equipment. The machine costs $68000 and would generate $17600 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $4000 salvage value. Blossom's required rate of return is 14%.
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Using the present value tables, the machine's net present value is nearest (round to the nearest dollar)
$60423. $88000. $-7577. $-5499.
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