What is the maximum price that should be paid for machine

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Reference no: EM131567100

Question: An investment in a certain machine is expected to earn a profit of $400 000 each year. What is the maximum price that should be paid for the machine if it has a lifetime of 7 years, the interest rate is 17.5%, and the annual profit is earned at the end of each year?

Reference no: EM131567100

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