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halston co. is considering an investment in a new product line. To make the product, the compnay would need to acquire new equipment. The cost

halston co. is considering an investment in a new product line. To make the product, the compnay would need to acquire new equipment. The cost of the new equipment. The cost of the new equipment and other relevent information is provided below:

Purcase price of machinery with a 6-year life 800,000
salvage value of new machinery at end of 6 years 80,000
Annual cash savings 210,000
Discount rate 14%

Answer choices:

A: 16,627

B: 96,627

C: 53,170

D: (63,373)

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