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Concose Park Department is considering a new capital investment. The cost of the machine is $260,000. The annual cost savings if the new machine
Concose Park Department is considering a new capital investment. The cost of the machine is $260,000. The annual cost savings if the new machine is acquired will be $125,000. The machine will have a 5-year life and the terminal disposal value is expected to be Cut $41,000. There are no tax consequences related to this decision. If Concose Park Department has a required rate of return of 20%, which of the following is closest to the present value of the project? > A. $33,768 UN B. $130,357 9 C. $113,875 26 mnour OD. $147,643
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