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A currently used machine costs $10,000 annually to run. What is the maximum that should be paid to replace the machine with one that will
A currently used machine costs $10,000 annually to run. What is the maximum that should be paid to replace the machine with one that will last three years and cost only $5,000 annually to run? The opportunity cost of capital is 12 percent.
$14,411 | ||
$5,000 | ||
$12,009 | ||
$15,000 |
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