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HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 7-year

HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 7-year useful life. The machine will cost $211,580 and has no salvage value. The machine has a 14% internal rate of return. (Ignore income taxes.)

What are the annual cost savings promised by the machine?

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