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Sunland Manufacturing is considering the purchase of new computerized equipment. The machine costs $87000 and would generate $25520 in annual cost savings over its 5-year

Sunland Manufacturing is considering the purchase of new computerized equipment. The machine costs $87000 and would generate $25520 in annual cost savings over its 5-year life. At the end of 5 years, the equipment would have a $5800 salvage value. Sunlands required rate of return is 14%. Using the present value tables, the machines net present value is (round to the nearest dollar)

$87613.

$615.

$3626.

$613.

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