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Determine the net present value for each machine

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Reference no: EM132032108

Question - Albert Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $69,210 and is expected to save the company $20,400 per year for six years. Machine B costs $95,540 and is expected to save the company $25,400 per year for six years.

Determine the net present value for each machine if the required rate of return is 10 percent. (Ignore taxes.)

Reference no: EM132032108

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