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The Imperial Chemical Company is considering purchasing a chemical analysis machine worth $ 1 3 , 0 0 0 . Although the purchase of this

The Imperial Chemical Company is considering purchasing a chemical analysis machine worth $13,000. Although the purchase of this machine will not produce any increase in sales revenues, it will result in a reduction of labour costs. In order to operate the machine properly, it must be calibrated each year. The machine has an expected life of 6 years, after which it will have no salvage value. The following table summarizes the annual savings in labour cost and the annual maintenance costs in calibration over 6 years:
\table[[Year (n),Costs ($),Savings ($),Net Cash Flow ($)],[0,13,000,,-13,000
please not - use the compound method and not the excel sheet
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