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5 Assume that two pieces of equipment have the following characteristics: Equipment Initial cost Expected life (years) Operating cost per year $10,000 8,000 $20,000 25,000

5 Assume that two pieces of equipment have the following characteristics: Equipment Initial cost Expected life (years) Operating cost per year $10,000 8,000 $20,000 25,000 Using a hurdle rate of 0.10, which equipment is the more desirable

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