Carrie Rushing is considering the purchase of a new production machine that costs $120,000. She has been

Question:

Carrie Rushing is considering the purchase of a new production machine that costs $120,000. She has been told to expect decreased annual operating expenses of $40,000 for four years. At the end of the fourth year the machine will have no and will be scrapped.

Required
What is the of the machine if Carrie’s is 9 percent (ignore income taxes)?

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