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In: Accounting

You are considering the purchase of a 3-D printing machine. This machine will have an estimated...

You are considering the purchase of a 3-D printing machine. This machine will have an estimated service life of 5 years with a salvage value of $12,000. Its annual net revenues are estimated to be $100,000. To get a 12% rate of return on investment, what is the maximum amount that you are willing to pay for the machine?

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Expert Solution

Therefore the maximum amount to pay for the machine is $367289


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