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DON Corp. is contemplating the purchase of a machine that will produce cash savings of $31,000 per year for five years. At the end of
DON Corp. is contemplating the purchase of a machine that will produce cash savings of $31,000 per year for five years. At the end of five years, the machine can be sold to realize cash flows of $6,100. Interest is 10%. Assume the cash flows occur at the end of each year. Required: Calculate the total present value of the cash savings.
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