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Dunken, Inc., is considering the purchases of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years,

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Dunken, Inc., is considering the purchases of a machine that would cost $110,000 and would last for 4 years. At the end of 4 years, the machine would have a salvage value of $18,000. The machine would reduce labor and other costs by $35,000 per year. Additional working capital of $5,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 13% on all investment projects. The net presents value of the proposed project is closed to: $9,657 -$2,004 $3,189 $13,223

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