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Mr.Smith is the owner of Company A. He is considering to buy a machine for $100,000 that will produce a net income, after operating expenses,
Mr.Smith is the owner of Company A. He is considering to buy a machine for $100,000 that will produce a net income, after operating expenses, of $10,000 per year. He plans to keep the machine for 4 years and targeting make a15%annual return on his investment. Based on this situation, what must the market (resale) value be that he should consider at the end of 4 years to justify the investment
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