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Kiwidale Dairy is considering purchasing a new ice-cream maker. Two models, Smoothie and Creamy, are available and their information is given below (all costs and profits are in dollars):
Smoothie
Creamy
First Cost
$20000
$34000
Service Life
14 years
12 years
Annual Profit
$4500
$9000
Annual Operating Cost
$950
$3250
Salvage Value
$2000
Calculate the present worth of the smoothie machine for one life cycle (no repeated lives), if the interest rate is 10%.
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