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Larson Manufacturing is considering purchasing a new injection-molding machine for $300,000 to expand its production capacity. It will cost an additional $25,000 to do the
Larson Manufacturing is considering purchasing a new injection-molding machine for $300,000 to expand its production capacity. It will cost an additional $25,000 to do the site preparation. With the new injection-molding machine installed, Larson Manufacturing expects to increase its revenue by $95,000 per year. The machine will be used for four years, with an expected salvage value of $60,000. At an interest rate of 14%, would the purchase of the injection-molding machine be justified? 5 Click the icon to view the interest factors for discrete compounding when i = 14% per year. The present worth of the project is $ . (Round to the nearest dollar.)
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