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A firm wants to buy a new computer in either year 0, 1, or 2. The firm must buy the system in one of these

A firm wants to buy a new computer in either year 0, 1, or 2. The firm must buy the system in one of these years or forego the project. The system that will increase the firm's cash flows by $50,000 per year for four years after purchase. The system costs $100,000 if purchased this year, but the price will decrease by 20% in year 1, and an additional 10% in year 2 (i.e., in year 2, the price will drop by 10% from the year 1 level). The discount rate is r=10%. When should the firm buy the new system?

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