Colgate-Palmolive can purchase a piece of equipment now for $80,000 or buy it 3 years from now

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Colgate-Palmolive can purchase a piece of equipment now for $80,000 or buy it 3 years from now for an estimated $128,000. The MARR requirement is a real return of 15% per year. If an inflation rate of 4% per year must be accounted for, should the company buy the machine now or later?

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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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