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Monty, Inc. is considering the purchase of a new machine for $550000 that has an estimated useful life of 5 years and no salvage val

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Monty, Inc. is considering the purchase of a new machine for $550000 that has an estimated useful life of 5 years and no salvage val The machine will generate net annual cash flows of $96250. It is believed that the new machine will reduce downtime because of its reliability. Assume the discount rate is 8%. In order to make the project acceptable, the reduction in downtime must be worth $33135 per year. $20959 per year. $16816 per year. $41223 per year

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