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Cullumber Manufacturing is considering the purchase of new computerized equipment. The machine costs $71400 and would generate $18480 in annual cost savings over its 5-year
Cullumber Manufacturing is considering the purchase of new computerized equipment. The machine costs $71400 and would generate $18480 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $4200 salvage value. Cullumber's required rate of return is 16%. Click here to view the factor table. Using the present value tables, the machine's net present value is nearest (round to the nearest dollar)
$60509.
$-8891.
$-10891.
$92400.
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