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Sue Falls is the president of Sports, Inc. She is considering buying a new machine that would cost $14,125. Sue has determined that the new machine promises an internal rate of return of 12%, but Sue has misplaced the paper which tells the annual cost savings promised by the new machine. She does remember that the machine has a projected life of 10 years. Based on these data, the annual cost savings are:

A. It is impossible to determine from the data given.

B. $1,412.50

C. $2,500.00

D. $1,695.00

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9407994

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