Question: A new machine will cost $25,000. The machine is expected to last 4 years and has no salvage value . If the interest rate is

A new machine will cost $25,000. The machine is expected to last 4 years and has no salvage value. If the interest rate is 12%, determine the return and the risk associated with the purchase.

0.3 0.3 0.3 0.4 P Annual savings $9500 $8500 $7000

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