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6. Your business is considering purchasing equipment that costs $150,000 and has a useful life of 5 years. At the end of 5 years the

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6. Your business is considering purchasing equipment that costs $150,000 and has a useful life of 5 years. At the end of 5 years the equipment will be worthless. The equipment is projected to generate cash savings of $40,888 per year over its life. The firm requires a return of 10 percent on the investment. Should they invest in this equipment? CF: 001: F01: I: CPT NPV

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