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JT Engineering wants to buy a machine that costs $158,000, has a 20-year life, and has a $12,000 salvage value. Annual inflows are $66,000 and
JT Engineering wants to buy a machine that costs $158,000, has a 20-year life, and has a $12,000 salvage value. Annual inflows are $66,000 and annual outflows are $41,000. JT requires 14% return, which has an annuity present value factor of 6.6231 and a single future amount present value factor of 0.0728. What is the net present value (NPV) of this purchase to the nearest dollar?
$4,804
$2,715
$1,820
$8,451
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