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8. Replacing old equipment at an immediate cost of $120,000 and an additional outlay of $25,000 three years from now will result in savings of

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8. Replacing old equipment at an immediate cost of $120,000 and an additional outlay of $25,000 three years from now will result in savings of $26.000 per year for 9 years. The required rate of return is 12% compounded annually. Compute the net present value Or and determine if the investment should be accepted present value criterion. rejected according to the net

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