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The management of Consumers Mfg. would like to purchase a specialized production machine for $90,000. The machine is expected to last three years, with a
The management of Consumers Mfg. would like to purchase a specialized production machine for $90,000. The machine is expected to last three years, with a salvage value of $10,000. Annual maintenance costs will total $24,000, and annual labor and material savings are predicted to be $75,000. The company's required rate of return in 15%. Find the NPV of this investment.
A. $33,020
B. $20,156
C. $40,311
D. $10,078
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