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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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