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A business is considering the purchase of new telecommunications equipment that will cost $ 4 0 0 , 0 0 0 , have a life
A business is considering the purchase of new telecommunications equipment that will cost $ have a life of years, and is expected to produce annual cost savings of $ The price of the equipment is expected to decrease by per year. Assuming the discount rate is should you buy the equipment today or wait to buy it and what is the appropriate purchase point?
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