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Your friend Smith is holding a silent auction on his three karaoke machines. He will only sell the three machines as a group. You figure
Your friend Smith is holding a silent auction on his three karaoke machines. He will only sell the three machines as a group. You figure that if you bought the machines, you can rent them out for annual profit of $6,000. The machines are estimated to have a life of 3 years, after which you will discard it at no cost. What is the maximum bid you can submit for each machine if your required return is 10%? Ignore taxes
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