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Carrie Rushing is considering the purchase of a new production machine that costs $120,000. She...

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Accounting

Carrie Rushing is considering the purchase of a new production machine that costs $120,000. She has been told to expect decreased annual operating expenses of $40,000 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 Carrie's cost of capital is 9 percent? Use the time value of money charts for your calculations. Round to the nearest dollar. (Ignore income taxes.)

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