Determining the machine price


A machine that costs $100,000 is expected to have a life of 5 years and then a scrap value of $15,000. If it's expected net returns are year 1 $20,000; year 2 $50,000; year 3 $35,000; year 4 $35,000; year 5 $35,000, and projects of this type are expected to return at least 18%, comment on whether the machine should be purchased.

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Finance Basics: Determining the machine price
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