Wildhorse Manufacturing is considering the purchase of new computerized equipment. The machine costs $85000 and...
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Wildhorse Manufacturing is considering the purchase of new computerized equipment. The machine costs $85000 and would generate $22000 in annual cost savings over its 5 -year life. At the end of 5 years, the equipment would have a $5000 salvage value. Wildhorse's required rate of return is 14%. Click here to view the factor table. Using the present value tables, the machine's net present value is nearest (round to the nearest dollar) $75528 $.9472. $.6875. $110000
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