Butler corporation is considering the purchase of new equipment costing $30,000. the projected annual after-tax net income from the equipment is $1,200, after deducting $10,000 for depreciation. the revenue is to be received at the end of each year. the machine has a useful life of 3 years and no salvage value. butler requires a 12% return on its investments. the present value of an annuity of $1 for different periods follows:
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