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6. A piece of equipment costs $10,000 and will save $3,000 per year in costs for the next 5 years. Using a hurdle rate

6. A piece of equipment costs $10,000 and will save $3,000 per year in costs for the next 5 years. Using a hurdle rate of 10% compounded monthly, determine the present value of the cost savings. Is the initial $10,000 investment worth it? Explain your answer.

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