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What is the present value today of the savings

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Question - You are thinking of building a new machine that will save your business some cash each year starting with $3,600 one year from today (at t=1). After those first savings, the machine will then begin to deteriorate such that the cash flow you save will decline at a rate of 4.0 per year forever.

Required - What is the present value today of the savings from this machine if the appropriate interest rate for discounting these cash flows is 14.8% per annum?

Reference no: EM132859794

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