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A lab manager receives a quotation for a new equipment from three different companies: Company-A Company-B Company-C Initial cost $15,000 $25,000 $20,000 Annual O&M cost

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A lab manager receives a quotation for a new equipment from three different companies: Company-A Company-B Company-C Initial cost $15,000 $25,000 $20,000 Annual O&M cost $1,600 $400 $900 Annual Benefit $8,000 $13,000 $11,000 Salvage Value $3,000 $6,000 $4,500 Useful Life 4 years 4 years 4 years If the nominal interest rate is 15%, which company you will recommend based on NPW analysis

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