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Determine the net present value of the machine purchase

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A company is contemplating the purchase of a machine. The following estimates are available:

Initial Outlay $35,000
Annual reduction in mfg. labor cost $8,500
Cost of capital 14%
Estimated life of the machine 5 yrs
Estimated residual value of machine $2,000

Determine the net present value of the machine purchase

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Determine the net present value with residual value
A company is contemplating the purchase of a machine. The following estimates are available:

Initial Outlay $35,000
Annual reduction in mfg. labor cost $8,500
Cost of capital 14% ...

Purchase this Solution
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