The machine will save $55,000 in labor annually. The machine can be purchased...

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Accounting

The machine will save $55,000 in labor
annually. The machine can be purchased for $225,000 today and will
be used for 10 years. It has a salvage value of $12,500 at the end of
its useful life. The new machine will require an annual maintenance
cost of $11,000. The corporation has a minimum rate of return of 9%.
Do you recommend automating the process?

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