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What is the net present value of the machine

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Reference no: EM131702643

Question - Daisy Delacroix is considering the purchase of a new production machine that costs $90,000. She has been told to expect decreased annual operating expenses of $36,000 for four years. At the end of the fourth year, the machine will have no salvage value and will be scrapped.

Required: What is the net present value of the machine if Daisy's cost of capital is 8 percent? Use the time value of money charts for your calculations. (Ignore income taxes.) Round your answer to nearest whole number.

Reference no: EM131702643

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