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You are thinking of building a new machine that will save you $ 1, 000 in the first year. The machine will then begin to

You are thinking of building a new machine that will save you $ 1, 000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever. What is the present value of the savings if the interest rate is 3 % per year?

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