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Business, 27.08.2019 23:20 sherlock19

Butler corporation is considering the purchase of new equipment costing $36,000. the projected annual after-tax net income from the equipment is $1,400, after deducting $12,000 for depreciation. the revenue is to be received at the end of each year. the machine has a useful life of 3 years and no salvage value. butler requires a 10% return on its investments. the present value of an annuity of $1 for different periods follows: periods 10% 1 0.9091 2 1.7355 3 2.4869 4 3.1699 what is the net present value of the machine?

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