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Yak Yarn Consolidated purchased a new spinning machine for $19,979. It is estimated that the machine will have annual expense

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Answer #1

Net revenue = 4725-4666 = 59

The present worth = -19979+59*(P/A,2%,5)+6147*(P/F,2%,5)

= -19979+59*4.71346+6147*0.905731

= -19979+278.09414+5567.5284

= -14133.38

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