Ips corp will upgrade its package-labeling machinery what, Financial Management

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Ips corp will upgrade its package-labeling machinery what

IPS Corp. will upgrade its package-labeling machinery. It costs $850,000 to buy the machinery and have it installed. Operation and maintenance costs, which are $10,000 per year for the first three years, increase by 1000 per year for the machine's 10-year life. The machinery has a salvage value of 10% of its initial cost. Interest is 25%. What is the future worth cost of the machinery?

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