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Northwest Digital makes various types of transmitters used in marine and military applications. They are considering replacing a CNC drilling machine that drills precision holes

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Northwest Digital makes various types of transmitters used in marine and military applications. They are considering replacing a CNC drilling machine that drills precision holes in circuit boards. The Busan CNC press costs $122,000, requires quarterly maintenance costing $10,200 and has a resale value of $55,000 after 5 years. The Stuttgart CNC press costs $164.000 also requires quarterly maintenance costing $8,300 and has a resale value of $65,000 after 5 years. Northwest wants to buy the machine with lowest NPV over the next 5 years and uses a rate of 15% APR to evaluate projects. What is the NPV of profit gain using Busan CNC press in present dollars? What is the NPV of profit gain using Stuttgart CNC press in present dollars? Which machine is a better choice? 18401303

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