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You are considering an investment of $2,500,000 in a new machine for your Factory. The machine will have a useful life of 15 years, at
You are considering an investment of $2,500,000 in a new machine for your Factory. The machine will have a useful life of 15 years, at the end of which it will be sold for scrap at 3% of its original price (salvage price).
If your cost of capital availability is 7.35 %, what is the minimum value of uniform annual benefits the machine must produce to make the investment neutral (PV = 0 no gains and no losses)?
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