Question: You are considering purchasing a CNC machine. This machine will have an estimated service life of 10 years with a salvage value of 15% of

You are considering purchasing a CNC machine. This machine will have an estimated service life of 10 years with a salvage value of 15% of the investment cost.

Its annual net revenues are estimated to be $60,000. To expect a 14% rate of return on investment (MARR), what would be the maximum amount that you are willing to pay for the machine?

(a) $312,065

(b) $320,466

(c) $326,161

(d) $332,188

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