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7. Lee Caterers Ltd. is about to make an investment in new kitchen equipment. It is considering whether to replace the existing kitchen equipment with

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7. Lee Caterers Ltd. is about to make an investment in new kitchen equipment. It is considering whether to replace the existing kitchen equipment with cook/freeze or cook/chill technology. The following cash flows are expected from each form of technology: The business would expect to replace the new equipment purchased with similar equipment at the end of its life. The cost of capital for the business is 10%. Required: Which type of equipment should the business invest in

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