The orgonne milling co is contemplating purchase of new

Reference no: EM13608094

The Orgonne Milling Co. is contemplating purchase of new equipment. The machinery is expected to generate increased sales of $50,000 per year over its 5 year life. Excluding the cost of the machinery, additional costs are expected to be $15,000 per year. If the firm requires a minimum 12% return on its invesment, what is the maximum price thecompany can pay for this equipment?

Reference no: EM13608094

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