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Slycon Ltd. is contemplating the purchase of a new machine that will increase overall efficiency and save approximately $7000 per month in labour costs. It

Slycon Ltd. is contemplating the purchase of a new machine that will increase overall efficiency and save approximately $7000 per month in labour costs. It is expected that the machine will last for 8 years, and it can then be sold for scrap, which will produce approximately $6,500. If the value of money is 12%, compounded monthly, what is the maximum price that the company should pay for the machine?

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