32. Replacement decisions (S6.4) Machine C was purchased five years ago for $200,000 and produces an annual
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32. Replacement decisions (S6.4) Machine C was purchased five years ago for $200,000 and produces an annual real cash flow of $80,000. It has no salvage value but is expected to last another five years. The company can replace machine C with machine B (see Problem 31)
either now or at the end of five years. Which should it do?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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