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To reduce costs, Acme Company plans to purchase some energy efficient equipment that costs $420,000, has a useful life of 10 years and a


To reduce costs, Acme Company plans to purchase some energy efficient equipment that costs $420,000, has a useful life of 10 years and a salvage value of $50,000. Acme uses a discount rate of 8% to make capital budgeting decisions. How large do the annual cost savings have to be to make this project acceptable? Round to the nearest whole dollar amount.

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