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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 $180,000, requires quarterly maintenance costing $12,400 and has a resale value of $63,000 after 10 years. The Stuttgart CNC press costs $155,000 also requires quarterly maintenance costing $6,300 and has a resale value of $88,000 after 10 years. Northwest wants to buy the machine with lowest NPV over the next 10 years and Lises a rate of 13.7% APR to evaluate projects. What is the net present value (NPV) of profit associated to Busan CNC press in present dollars? What is the net present value (NPV) of profit associated to Stuttgart CNC press in present dollars? Which machine is a better choice? A/

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