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A construction company can purchase a used backhoe for $95,000 and spend $550 per day in operating costs. The equipment will have a 5-year life
A construction company can purchase a used backhoe for $95,000 and spend $550 per day in operating costs. The equipment will have a 5-year life with no salvage value. Alternatively, the company can lease the equipment for $820 per day. How many days per year must the company use the equipment in order to justify its purchase at an interest rate of 12% per year!
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