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Novak, Inc. is considering the purchase of a new machine for $ 6 9 0 0 0 0 that has an estimated useful life of

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Novak, Inc. is considering the purchase of a new machine for $690000 that has an estimated useful life of 5 years and no salvage value. The machine will generate net annual cash flows of $120750. 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
\table[[Year,\table[[Present Value],[of 1 at 8%
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