A company is considering expanding their production capabilities
with a new machine that costs $43,000 and has a projected lifespan
of 8 years. They estimate the increased production will provide a
constant $6,000 per year of additional income. Money can earn 1.4%
per year, compounded continuously. Should the company buy the
machine?
Select an answer Yes, the present value of the machine is greater
than the cost by No, the present value of the machine is less than
the cost by $ ?? over the life of the machine
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