(Ignore income taxes in this problem.) AB Company is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 6-year useful life. The machine will cost $83,150 and has no salvage value. The machine has a 20% internal rate of return.
Required:
What are the annual cost savings promised by the machine?

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The Answer of (Ignore income taxes in this problem.) AB Company is considering the purchase of a machine that promises to reduce operating costs by the same amount for every year of its 6-year useful life. The machine will cost $83,150 and has no salvage value. The machine has a 20% internal rate of return.
Required:
What are the annual cost savings promised by the machine?

(Ignore Income Taxes in This Problem