Question: You are considering a CNC machine. This machine will have an estimated service life of 10 years with a salvage value of 10% of the

You are considering a CNC machine. This machine will have an estimated service life of 10 years with a salvage value of 10% of the investment cost. Its expected savings from annual operating and maintenance costs are estimated to be $60,000. To expect a 15% rate of return on investment, what would be the maximum amount that you are willing to pay for the machine?

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