The data for new and used machines are shown below:…
The data for new and used machines are shown below: Used Machine New Machine Initial Cost ($) 15,000 40,000 Annual Operating Cost ($/year) 8,000 2,000 Salvage Value ($) 5,000 10,000 Life (years) 3 6 Use an interest rate of 10% per year. The present worth of the new machine is closest to:
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