Question: Sheffield Co. is considering purchasing a machine that will produce annual savings of $25200 at the end of the year. Sheffield requires a 12% rate

Sheffield Co. is considering purchasing a machine that will produce annual savings of $25200 at the end of the year. Sheffield requires a 12% rate of return and the asset has a 5-year useful life. What is the maximum Sheffield would be willing to pay for this machine?

Present Value of Annuity of 1
Period	12%
5	3.605

Present Value of 1
Period	12%
5	0.567

$57154

$90846

$126000

$71442

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