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3. A securities firm is considering automating some of its portfolio maintenance activities. The cost to install the system is $5.32 M. Until the
3. A securities firm is considering automating some of its portfolio maintenance activities. The cost to install the system is $5.32 M. Until the system needs to be replaced in 4 years, the securities firm 1 expects $1.37 M in after-tax savings each year due to the automation. If the company's cost of capital is 15%, should it automate the activities? Support your recommendation. (6 points)
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