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2. LEAF Company is considering the purchase of new computer equipment that will increase efficiencies within its hospital floors. The following estimates are available: Initial
2. LEAF Company is considering the purchase of new computer equipment that will increase efficiencies within its hospital floors. The following estimates are available: Initial Outlay $1,000,000 Annual reduction in fixed costs $175,000 Cost of capital 10% Estimated life of computer equipment 5 years Estimated residual value of equipment $25,000 Determine the net present value of the computer equipment purchase
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