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DON Corporation is contemplating the purchase of a machine that will produce net after-tax cash savings of $28,000 per year for 8 years. At the
DON Corporation is contemplating the purchase of a machine that will produce net after-tax cash savings of $28,000 per year for 8 years. At the end of eight years, the machine can be sold to realize after-tax cash flows of $5,900. Assuming a 11% discount rate, calculate the total present value of the annual cash savings and the salvage value of the machine. (EV. ot$1. PV. ($1. EVA of $1, and PVA of $1), (Use appropriate factor(s) from the tables provided. Round final answer to the nearest whole dollar) Total present value
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