Question: Question 6 (10 points): A new machine can be purchased today for $400,000. The annual revenue from the machine is calculated to be $77,000, and
Question 6 (10 points): A new machine can be purchased today for $400,000. The annual revenue from the machine is calculated to be $77,000, and the equipment will last 10 years. Expect the maintenance and operation costs to be $4,000 a year and to increase $700 per year. The salvage value of the machine will be $30,000. a) Draw a cash flow diagram for this project. b) What is the rate of return for this machine
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