Question: 2) A machine would cost $100,000 today. Starting from next year, it would generate $25,000 revenue per year and cost $7,000 per year for operations
2) A machine would cost $100,000 today. Starting from next year, it would generate $25,000 revenue per year and cost $7,000 per year for operations and maintenance. The machine would last 10 years with no salvage value and your MARR is 6% annual rate compounded annually. What is the net present value of this potential investment? Should you invest in this machine? Give one sentence answer for why or why not.
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