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(Ignore Income Taxes in This Problem

Question 47

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(Ignore income taxes in this problem. )The management of Basler Corporation is considering the purchase of a machine that would cost $440,000,would last for 7 years,and would have no salvage value.The machine would reduce labor and other costs by $88,000 per year.The company requires a minimum pretax return of 12% on all investment projects.
Required:
Determine the net present value of the project.Show your work!

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