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Your company is considering investing in a new technology that can improve production efficiency. The new technology requires a capital investment of $500,000 now, and
Your company is considering investing in a new technology that can improve production efficiency. The new technology requires a capital investment of $500,000 now, and it will save $54,500 at the end of each year for material and labor cost. Further, the updated production line will have a salvage value of $70,000 at the end of the tenth year when it reaches the end of its service life of 20 years. The cost for maintenance and operation is $15,000 each year. What is the net present worth of investing in this new technology with a 10% interest rate? Round the answer to the nearest integer
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