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Rambus Inc. would like to purchase a production machine for $325,000. The machine is expected to have a life of three years, and a salvage

Rambus Inc. would like to purchase a production machine for $325,000. The machine is expected to have a life of three years, and a salvage value of $200,000. Annual maintenance costs will total $12,500. Annual savings are predicted to be $112,500. The company's required rate of return is 12 percent. Using the Present Value Factors for $1, calculate the net present value of this investment (ignoring taxes)

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