Vandelay Industries is considering the purchase of a new machine for the production of latex....

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Finance

Vandelay Industries is considering the purchase of a new machine for the production of latex. Machine A costs $3,190,000 and will last for six years. Variable costs are 35 percent of sales, and fixed costs are $330,000 per year. Machine B costs $5,429,000 and will last for nine years. Variable costs for this machine are 30 percent of sales and fixed costs are $230,000 per year. The sales for each machine will be $12.2 million per year. The required return

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