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8. A mutual fund company is considering automating some of its trading processes. The cost to install the computers and software is $4.5M. Until the
8. A mutual fund company is considering automating some of its trading processes. The cost to install the computers and software is $4.5M. Until the technology needs to be replaced in 4 years, the mutual fund company expects $1.25M in after-tax savings each year due to the automation. If the companys cost of capital is 11%, should it automate the processes? Support your recommendation.
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