If The Tire Company purchases an automatic blender, material waste will be reduced by $10,000 in the first year, the savings will increase by 8 percent over the 6-year life of the blender after that the blender can be sold for $20,000. Assuming savings occur at year-end what is the maximum price that the company can pay for the blender if the effective annual rate is 12 percent.

Select the right answer

-$49010

$49010

$59142

$38877