This is An Advanced Management problem.

Please Show Work.

You are trying to justify a purchase of a machine for your boss and you have the below information. Compute the Present Equivalent/Present Worth of the machine to help justify its purchase. Your boss would like to see your computation rounded to the nearest $1,000 dollars. Select the Present Equivalent amount from the choices below. Machine Initial cost Service life Salvage value Net annual operating costs Net annual revenue from machine Minimum Attractive Rate of Return (MARR) 6,500,000 6 years 500,000 1,800,000 3,500,000 $ 12% $643,000 $680,000 $743,000 None of the above