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Determine the net present value for each machine

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Reference no: EM131749495

Problem - Macaron Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $70,360 and is expected to save the company $20,040 per year for 6 years. Machine B costs $101,090 and is expected to save the company $25,040 per year for 6 years.

Determine the net present value for each machine if the required rate of return is 11 percent. (Ignore taxes.)

Machine A= ?

Machine B= ?

Which machine should be purchased?

Attachment:- Table.rar

Reference no: EM131749495

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