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Don't use excel You want to buy a new machine. It's going to cost $200,000 and have a salvage value of $15,000 after 7 years.
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You want to buy a new machine. It's going to cost $200,000 and have a salvage value of $15,000 after 7 years. Annual operating costs are $75,000. It also costs $5000 a year to employ an operator for the machine. If at year 0 you sell your current machine for $3,000 and purchase the new machine, how much will you need to generate in revenue to make a 12% rate of returnStep by Step Solution
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