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8. Replacing old equipment at an immediate cost of $80,000 and an additional outlay of $10,000 three years from now will result in savings of

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8. Replacing old equipment at an immediate cost of $80,000 and an additional outlay of $10,000 three years from now will result in savings of $21,000 per year for 6 years The required rate of return is 12% compounded annually. Compute the net present value and determine if the investment should be accepted or rejected according to the net present value criterion

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