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JK Manufacturing would like to install a machine costing $37,500 with a life of 12 years to bring in benefits to the company of $5,100
JK Manufacturing would like to install a machine costing $37,500 with a life of 12 years to bring in benefits to the company of $5,100 per month. The monthly expenses for the machine are $4,650. If the MARR that the company uses is 12% per year, what should be the minimum salvage value as a percentage of the initial machine cost that the company should get at the end of the machine life to justify installing the machine?
Around 12% | ||
Around 24% | ||
Around 36% | ||
Around 48% |
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