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Use the following data for questions 37 & 38: The Broad College's Starbucks owner has been given the option of buying a new espresso machine
Use the following data for questions 37 & 38: The Broad College's Starbucks owner has been given the option of buying a new espresso machine that works twice as fast as the existing one. The machine will allow the store to cut costs by S5275 per year over the next 3 years. The store is able to invest unused cash at a rate of 5.2% annual interest Question 37: What is the present value of the cost savings? Multiple Choice $14,31.47 $16,662 16 $15,825.00 $12,491.84 $18,618,36 Activate Windows Use the following data for questions 37 & 38: Question 38: Using your solution to Question 37, and assuming the machine can be purchased on credit at 5.2% annual interest with 3 years of monthly payments, what is the maximum monthly payment the store owner should be willing to make for the machine? Multiple Choice $39674 $430.21 $475.71 $486.07 Activate Windowe
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