Estimate service life of ten years with a salvage value

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Reference no: EM13201004

You are considering a CNC machine. This machine will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its annual net revenues are estimated to be $50,000. To expect a 20% rate of return on investment, what would be the maximum amount that you are willing to pay for the machine?

Reference no: EM13201004

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