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You have purchased a machine costing $30000. The machine will be used for 2 years, and at the end of this time, its salvage value is expected to be $18000. The machine will be used for 6,000 hours during the first year and 8000 during the second year. The expected annual net savings will be $35000 during the first year and $42000 during the second year. If your interest rate is 12%, what would be the equivalent net savings per machine hour?

Business Economics, Economics

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