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Coronado Corporation is considering...

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Accounting

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Coronado Corporation is considering buying a brand new machine and has gathered the following data: Salvage value for the machine is estimated to be zero. Click here to view the factor table. Calculate the net present value of the machine assuming a 6% discount rate. (If the net present value is negative, use either sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the facto provided, eg. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) $ Should the company buy the machine based on your results? Further investigation reveals that there would be a sales increase of $7,200 annually as a result of an increase in quality fi customer's perspective and a cost reduction of $3,000 annually as a result of lower warranty claims. Considering these ac facts, calculate the Net Present Value of the machine. (If the net present value is negative, use either a negative sign preceding number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, eg. 1.25124. Round present value answer to 0 decimal places, e.g. 125.) Should the company buy the machine

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