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Martinez Growth Farms, a farming cooperative, is considering purchasing a tractor for $555,980. The machine has a 10-year life and an estimated salvage value of

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Martinez Growth Farms, a farming cooperative, is considering purchasing a tractor for $555,980. The machine has a 10-year life and an estimated salvage value of $45,000. Delivery costs and set-up charges will be $13,000 and $420, respectively. Martinez Growth uses straight-line depreciation and has a required rate of return of 9% Martinez Growth estimates that the tractor will be used five times a week with the average charge to the individual farmers of 5420 . Fuel is $55 for eachuse of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766 Click here to view PV tables For the new tractor, compute the: (a) Cash payback period. (Round answer to 1 decimal places, es, 15.2) Cash payback period years Net present value. (Round factor values to 5 decimal ploces, eg. 15.11212. Round Intermediate calculations and final answer to 0 decimal ploces, eg. 5,275.) TABLE 1 Future Value of 1 TAIIL: Future Value of an Aneuity of 1

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