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current machine are 570.000 per year pert machine will cost will last for six i which mi Operating with the ly 5.000. Asuing
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Answer #1
Savings in operating costs = 70000-46000 = $              24,000
Initial cost = 70000-5000 = $              65,000
Salvage value = $ 1,500
Incremental NPV = -65000+24000*5.242+1500*0.790 = $              61,993
Answer: Option [A] $61,993
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