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A firm purchased some equipment at a price of $50000. The equipment resulted in an annual net saving of $2000 per year during the 10

A firm purchased some equipment at a price of $50000. The equipment resulted in an annual net saving of $2000 per year during the 10 years it was used. At the end of 10 years, the equipment was sold for $40000. Draw a cash flow diagram that depicts this situation. Assuming i=8%, what was the equivalent cost to the company of this transaction on the purchase date?

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