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A machine would cost $90,000, and would generate revenues of $19,000 per year. However, O&M costs would be $6,000 per year. The machine would last 10 years and your MARR is 10% annual rate compounded annually. What is the Net Present Value of this potential investment? Should you invest in the machine? (One sentence answer why or why not)

1 Answer

1 vote

Answer:

You should not invest in the machine because it would not generate sufficient returns to cover the initial cost and operating expenses, resulting in a negative net present value.

Step-by-step explanation:

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User ArunKumar M N
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