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Sue-Anns Machine Group (S-AMG) wants to buy a new Turbo Encabulator . If 12% is the acceptable return for S-AMG, determine the net present worth

Sue-Anns Machine Group (S-AMG) wants to buy a new Turbo Encabulator. If 12% is the acceptable return for S-AMG, determine the net present worth of this best vendor alternative.

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ITEM VALUE Purchase cost $80,000 Useful life 5 years Annual cost $12,000 Salvage value $10,000

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