Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $15,000 annual savings for 9 years and can be sold for $41,000 at the end of the period, what is the present value of the machine investment at a 10% interest rate with savings realized at year end? Round your present

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $15,000 annual savings for 9 years and can be sold for
$41,000 at the end of the period, what is the present value of the machine investment at a 10% interest rate with savings realized at year end? Round your present
value factor to three decimal places and final answer to the nearest dollar.
(Click here to see present value and future value tables)
Transcribed Image Text:Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $15,000 annual savings for 9 years and can be sold for $41,000 at the end of the period, what is the present value of the machine investment at a 10% interest rate with savings realized at year end? Round your present value factor to three decimal places and final answer to the nearest dollar. (Click here to see present value and future value tables)
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