Determine maximum price that company pay for machine


Slycon Ltd. is contemplating purchase of the new machine which will increase overall efficiency and save about $500 per month in labour costs. It is anticipated that machine will last for 8 years and can then be sold for scrap, that will make about $5,000. If value of money is 15%, compounded monthly, determine maximum price that company must pay for machine?

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Microeconomics: Determine maximum price that company pay for machine
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