Replacing old equipment at an immediate cost of $50 000 and an additional outlay of $30000 6

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Replacing old equipment at an immediate cost of $50 000 and an additional outlay of $30000 6 years from now will result in savings of $3000 per quarter for 12 years. The required rate of return is 10% compounded annually.
For the investment choices, compute the net present value. Determine investment should be accepted or rejected according to the net present value criterion.
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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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