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12. The company that sold the equipment to iMost Company now makes an attachment for the equipment that is expected to reduce direct labor expenses
12. The company that sold the equipment to iMost Company now makes an attachment for the equipment that is expected to reduce direct labor expenses by 12% per year. The attachment will cost the company $15,000 and can be used for the remaining useful life of the machinery. Ignore the impact of income taxes. Should iMost Company purchase the attachment? SHOW YOUR CALCULATIONS
INITIAL INVESTMENT = $300,000
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