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1 (20 points) A. What is the most you would pay today for a piece of equipment that is expected to increase profitability by

1 (20 points) A. What is the most you would pay today for a piece of equipment that is expected to increase profitability by $15,000 per year for the next 13 years? Assume your discount rate is 10%. You buy the item this year, but the increase in profits starts next year. Write the general formula and answer. Show your work.

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