Determine the amount invade should be willing to pay

Reference no: EM132158747

Question: The industrial engineering department for Invade Air Fresheners has found that a new packing machine should save $45,000 for each of the next 8 years. The machine will require a major overhaul at the end of 5 years costing $12,000. The machines expected salvage value after 8 years is 7.5% of its original cost. If money is worth 5%, determine the amount Invade should be willing to pay for the machine.

Reference no: EM132158747

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