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Current Attempt in Progress Riverbed Pix currently uses a six - year - old molding machine to manufacture silver picture frames. The company paid $
Current Attempt in Progress
Riverbed Pix currently uses a sixyearold molding machine to manufacture silver picture frames. The company paid $ for the
machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years, it will need a
$ overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company
currently produces and sells frames per year, generating a total contribution margin of $
Martson Molders currently sells a molding machine that will allow Riverbed Pix to increase production and sales to frames per
year. The machine, which has a tenyear life, sells for $ and would cost $ per year to operate. Riverbed Pix's current
machine costs only $ per year to operate. If Riverbed Pix purchases the new machine, the old machine could be sold at its book
value of $ The new machine is expected to have a salvage value of $ at the end of its tenyear life. Riverbed Pix uses
straightline depreciation.
Click here to view the factor table.
a
Your answer is incorrect.
Calculate the new machine's net present value assuming a discount rate. For calculation purposes, use decimal places
as displayed in the factor table provided and round final answer to decimal place, eg
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