Determine the net present value for each machine

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Question - Albert Shoe Company is considering investing in one of two machines that attach heels to shoes. Machine A costs $69,950 and is expected to save the company $20,180 per year for six years. Machine B costs $95,200 and is expected to save the company $25,180 per year for six years.

Determine the net present value for each machine if the required rate of return is 13 percent. (Ignore taxes.).

Reference no: EM132075115

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