Compute the net present worth to determine whether

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A machine costs $1,000,000 to purchase and will produce $200,000 per year revenue. Annual operating and maintenance cost is $50,000. The company plans to use the machine for 10 years and then sell it for scrap for which it expects to receive $50,000. The company interest rate is 10.0%. Compute the net present worth to determine whether or not the machine should be purchased?

Reference no: EM131082261

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