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Copr. Goedl Astore, Inc. reported the following financial data for the most recent year end. Sales, $ 2 1 0 , 0 0 0 ;

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Copr. Goedl Astore, Inc. reported the following financial data for the most recent year end. Sales, $210,000; operating expenses $180,000; average operating assets, $200,000; total liabilities, $65,000.
The company is considering investing in a new machine that would cost $30,000. The machine should generate an additional $21,000 in sales revenue and cost approximately $12,300 to operate.
The company's minimum required rate of return is 14%.
What is the residual income for the new machine?
$4,500
$8,700
$4,200
$2,000
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