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What is the maximum purchase price that martell products

a) Martell Products Inc. can purchase a new copier that will save $5,000 per year in copying costs. The copier will last for six years and have no salvage value.

Required:

1. What is the maximum purchase price that Martell Products should be willing to pay for the copier if the company's required rate of return is:

a. Ten percent?

b. Sixteen percent?

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Managerial Accounting: What is the maximum purchase price that martell products

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