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You have just been offered a contract worth $1.21 million per year for 5 years. However, to take the contract, you will needDaily Enterprises is purchasing a $10.5 million machine. It will cost $54,000 to transport and install the machine. The machi

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Answer #1

a) Most amount that can be paid:-

=PV(rate,nper,pmt)

=PV(12.1%,5,1.21)

=4.35 million

b) Yearly depreciation expenses:-

=(cost+salvage)/years

=(10500000+54000)/5

=2110800

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