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Get PriceA company wants to purchase a cutting machine now. The price of the machine is 40,000. If the company must pay 4000 uniformly each year, starting from year 2 for 6 years, for service and maintenance of the machine, what is the equivalent future value in the last year for whole payments when the interest rate is 12% per year? (25 points) Answer:
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Get PriceBrookite Company (BC) wants to purchase a new machine costing 500,000 which will last 12 years to make Hoverboard – a new product. Because BC deals in products that are consumer oriented where tastes change rapidly, they assume a useful life for their products of 5 years. This machine could be sold for 200,000 at the end of Year 5 or for 50,000 at the end of 12 .
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