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Business, 06.05.2021 01:00 shaferxspecial8397

Lamping, Inc., is considering the purchase of a machine that would cost $520,000 and would last for 7 years, at the end of which, the machine would have a salvage value of $52,000. The machine would reduce labor and other costs by $112,000 per year. Additional working capital of $6,000 would be needed immediately, all of which would be recovered at the end of 7 years. The company requires a minimum pretax return of 14% on all investment projects. (Ignore income taxes). Required:
Determine the net present value of the project.

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Lamping, Inc., is considering the purchase of a machine that would cost $520,000 and would last for...
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