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Question: your company is considering purchasing a new machine it will...

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Your company is considering purchasing a new machine. It will take three years to put into operation, but at the end of the third year it will increase company income by $10,000, increasing by $1,000 per year for the following five years. At the end of the eighth year it will be worn out and have no scrap value. If the cost of capital to the company is 15%, what is the most it is worth paying for the machine now? (5 pts)

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