Question: HT Tech wants to purchase a $130,000 machine. The machine will last 10 years, be paid off in 6 years, and have no salvage value

HT Tech wants to purchase a $130,000 machine. The machine will last 10 years, be paid off in 6 years, and have no salvage value at the end of its life. Net annual cash flows are $24,000, the discount factor is 12, and the present value of cash flows is $135,605 . Per the net present value NPV) methodthe purchase is acceptable for HT. What was the determining factor in this decision?

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