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Monty Growth Farms, a farming cooperative. is considering purchasing a tractor for 5565,370 The machine has a 10-year life and an estimated salvige value of

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Monty Growth Farms, a farming cooperative. is considering purchasing a tractor for 5565,370 The machine has a 10-year life and an estimated salvige value of $46,000. Dellvery costs and set-op charges will be $13,100 and $420, respectively. Monty Growth uses straight-lint depreciation and has a required rate of return of 9% Monty Growthestimates that the tractor will be used five times a week with the awerage charge to the individual farmers of 5420 . Fuel is $55 for each use of the tractor. The present value of an annuity of 1 for 10 years at 9% is 6.41766 . click here toview PV tables: Far the new tractor, compute the

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