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Johnson Company is considering the purchase of a new machine that will cost $224,000. The new machine was given a 10-year lif


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Answer #1

Annual cash inflow =$45430*5.889. =$267537 [5.889 =(1/1.11)^10]

cost of asset=$224000-$9000(salvage). =$ 215000

Salvage value of new asset. =$ 52537

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