A company is considering expanding their production capabilities with a new
machine that costs $84,000 and has a projected lifespan of 7 years. They
estimate the increased production will provide a constant $12,000 per year of
additional income. Money can earn 1.2% per year, compounded continuously.
Should the company buy the machine?
No, the present value of the machine is less than the cost by
over the life of the machine
OF $