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8 . 2 7 . Rework problem 8 . 1 2 if the interest rate is ( a ) 1 5 % per year, (
Rework problem if the interest rate is a per year, b per year, compounded annually.
The ABC company is considering the purchase of a new sanding machine; machine models A and B are available. Both models have a five year life, and their cash flows are given in table The interest rate is per year, compounded annually. Which model should ABC buy?
a
tableTable Cash FlowsModel AModel B$$
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