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You are considering purchasing a new machine for your manufacturing business. The mochine will improve efficiency and you expect it to save you $2,000 by

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You are considering purchasing a new machine for your manufacturing business. The mochine will improve efficiency and you expect it to save you $2,000 by the end of the first year ofter it is instolled. The machine will then begin to wear out and you estimate that the savings will decroase 3% pelr yoar indefinitely. If the discount rato is 10%. what is the most you can pay to ocquire that machine and stal experience savings in prosent value terms? 101 and 104 $15,384.62$28,571.43$20,000,00$14.628.79

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