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2. Lucy Company is considering purchasing new equipment. The cost of the equipment is $225,000. The salvage value of the equipment is $25,000 and the

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2. Lucy Company is considering purchasing new equipment. The cost of the equipment is $225,000. The salvage value of the equipment is $25,000 and the estimated life is 8 years. The annual Net income from the equipment. is expected to be $40,000. The discount rate (cost of capital) is 10% Results

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