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A bakery is trying to decide whether or not to buy a new oven. The bakery will buy the oven if it increases profits over

A bakery is trying to decide whether or not to buy a new oven. The bakery will buy the oven if it increases profits over the next four years. Assume a 5% interest rate. If the bakery does not buy the new oven, it will earn a profit of $25,000 at the end of each of the next four years. If the bakery does buy the new oven, profits will be $20,000 at the end of year 1, $24,000 at the end of year 2, $28,000 at the end of year 3, and $32,000 at the end of year 4. Should the bakery buy the oven?

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