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A firm is considering leasing or buying a mower. The mower costs $1006 and is expected to create operating cash flows (this is the cash
A firm is considering leasing or buying a mower. The mower costs $1006 and is expected to create operating cash flows (this is the cash flows net of any taxes and other cash outflows) of $25 per year, for the next three years. At the third year, the mower can be sold for a net sale price of $70. If the appropriate discount rate is 5%, what is the cost of owning the mower? If the cost is negative, record your answer with a negative sign
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