VYS Inc will purchase a new machine that costs $30,000 and is expected to last 12 years
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Question:
VYS Inc will purchase a new machine that costs $30,000 and is expected to last 12 years with a salvage value of $3,000.Annual operating expenses for first year is $9,000 and increase by $200 each year thereafter.Annual income is expected to be $12,000 per year.If VYS's MARR is 10%, determine the NFW of the machine purchase.
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