GlenVine is considering a purchase of a new grape crusher to make their wine. This new...

 

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GlenVine is considering a purchase of a new grape crusher to make their wine. This new crusher is much more efficient than the one that GlenVine currently uses which would result in an annual savings of $20,000 over the next 10 years. At the end of those 10 years, GlenVine expects to sell the machine for $50,000. What is the present value of the grape crushing machine investment at a 9% interest rate with savings realized at year end? P.V. of an annuity P.V. of $1 for $50,000 P.V. of grape crushing machine GlenVine is considering a purchase of a new grape crusher to make their wine. This new crusher is much more efficient than the one that GlenVine currently uses which would result in an annual savings of $20,000 over the next 10 years. At the end of those 10 years, GlenVine expects to sell the machine for $50,000. What is the present value of the grape crushing machine investment at a 9% interest rate with savings realized at year end? P.V. of an annuity P.V. of $1 for $50,000 P.V. of grape crushing machine

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