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Bud Co is contemplating the purchase of a machine that will produce cash savings of 15,000 per year for 5 years. at the end of
Bud Co is contemplating the purchase of a machine that will produce cash savings of 15,000 per year for 5 years. at the end of five years, the machine can be sold to realize cash flows of 7,000 interest is 10%. Assume the cash flows occur at the end of each year A: Bud Co can purchase this machine for 80,000. Does it make financial sense for the company to purchase the machine? Explain your answer in 1-2 sentences B: what is the Present Value of the cash savings provided by the new Machine
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