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The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 85217 and has a useful life of 2years.
The manager of Automated Products is contemplating the purchase of a new machine that will cost $ 85217 and has a useful life of 2years. The machine will yield (year-end) cost reductions to Automated Products of $40,000 in year 1 and $50,000 in year 2 What is the (NPV) present value of the cost savings of the machine if the interest rate is 5 percent?
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