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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 6
HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its year useful life. The machine will cost $ and has no salvage value. The machine has a internal rate of return. Ignore income taxes.
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using the tables provided.
Required:
What are the annual cost savings promised by the machine? Round your intermediate calculations and final answer to the nearest whole dollar amount.
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