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Sheridan Manufacturing is considering the purchase of new computerized equipment. The machine costs $69000 and would generate $20240 in annual cost savings over its 5-year
Sheridan Manufacturing is considering the purchase of new computerized equipment. The machine costs $69000 and would generate $20240 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $4600 salvage value. Sheridans required rate of return is 14%. Click here to view the factor table. Using the present value tables, the machines net present value is (round to the nearest dollar)
$488.
$69486.
$2875.
$486.
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