Question: Bluey Inc. is considering purchasing a new machine for $340,000. The new machine would save the company $80,000 per year in operating costs and would

Bluey Inc. is considering purchasing a new machine for $340,000. The new machine would save the company $80,000 per year in operating costs and would have a 4-year useful life, with an expected disposal value of $85,000. Disregard any tax consequences.

If the company has a 12% required rate of return, what is the net present value of the investment?

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