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ompany plans to invest in a new machine that costs $10,000. This machine can gen 00 per year. The lifetime of this machine is 12 years. It can be sold for an estimate Do If the compor MARR in 10% nor should it but the maghing?

ompany plans to invest in a new machine that costs $10,000. This machine can gen 00 per year. The lifetime of this machine is 12 years. It can be sold for an estimate Do If the compor MARR in 10% nor should it but the maghing?

EBK CFIN
EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 3PROB
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Question 2 A company plans to invest in a new machine that costs $10,000. This machine can generate an income of $1,500 per year. The lifetime of this machine is 12 years. It can be sold for an estimated salvage value of $9000. If the company's MARR is 10% per year, should it buy the machine?
Transcribed Image Text:Question 2 A company plans to invest in a new machine that costs $10,000. This machine can generate an income of $1,500 per year. The lifetime of this machine is 12 years. It can be sold for an estimated salvage value of $9000. If the company's MARR is 10% per year, should it buy the machine?
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