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A new brewing machine costs a brewery $300,000 but saves $80,000/yr. The machine lasts for 10 years and ends with no salvage value. Real interest
A new brewing machine costs a brewery $300,000 but saves $80,000/yr. The machine lasts for 10 years and ends with no salvage value. Real interest rate = 14%; inflation = 6%. Is project worth doing? Analyze in actual and real dollars.
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