Company requires a minimum pretax return

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A company is contemplating the purchase of a new machine that will save $15,000.00 per year in labor. The machine will cost $40,000.00 and will last 5 yrs. There will be no salvage value left after 5 years. This company requires a minimum pretax return of 20% per annum on all investments. Is this machine a viable project?

Reference no: EM132346131

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