Minimum pre tax return of on all investment projects

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Nevland Corp is considering the purchase of a machine that would cost $130000 and would last for 6 years. At the end of 6 years, the machine would have a salvage value of 18000. By reducing labor and other operating costs, the machine would provide annual cost savings of $44,000. The company requires a minimum pre tax return of 19% on all investment projects.

Reference no: EM13523583

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