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A manufacturing company is considering investing in a new cutting machine that will cost $140,000 and has an annual maintenance cost of $15,000. There is also an additional overhauling cost of $30,000 for the equipment at the end of every four years. If the equipment will last for a total of 4 years under these conditions and the costs do not change, what is the net present worth (NPW) of this investment at an interest rate of 11%?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91711141

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