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5) Optimal Timing of Investment ABC Company estimated that an investment of $20,000 in a computer system would reduce costs by $4,000 a year in

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5) "Optimal Timing of Investment" ABC Company estimated that an investment of $20,000 in a computer system would reduce costs by $4,000 a year in perpetuity. However, the prices of computers are predicted to fall at 10% a year for the next 5 years. When should the computer be purchased if the cost of capital is estimated to be 16%

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