What is the maximum the company should pay

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Question - Conyer Company is considering purchasing a new machine which is expected to generate sales of $10,000 per year for the next 8 years. The company uses a discount rate of 10%. What is the maximum the company should pay for the machine if the expected residual value is zero? What if the machine could be sold for $15,000 at the end of the 8 years?

Reference no: EM132437299

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