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scigeekalic scigeekalic
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A year ago

HI Corporation is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 7-year useful life. The machine will cost $206,780 and has no salvage value. The machine has a 14% internal rate of return. (Ignore income taxes.)

Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.

Required:

What are the annual cost savings promised by the machine? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)

Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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davisdiamonddavisdiamond
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A year ago
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scigeekalic Author
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A year ago
This site is awesome
jodie1
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Just got PERFECT on my quiz
patod1
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Good timing, thanks!
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