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Evaluate machine XYZ when MARR is 12% per year. Pertinent data are as follows: Machine XYZ Investment cost $10,000 Expected life 5 years Market (salvage)

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Evaluate machine XYZ when MARR is 12% per year. Pertinent data are as follows: Machine XYZ Investment cost $10,000 Expected life 5 years Market (salvage) value $1,000 Annual revenue $8,000 Annual expenses $4,000 a. How much is the excess of the cash flow using the Annual Worth Method? b. Calculate the External Rate of Return. c. Compute the payback period of the investment. d. Would you recommend this investment? Explain briefly

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