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A Toy companies approve to purchase the production machines valued at $10,000. The average operating costs is $ 1,500 per year. The predicted annual benefit
A Toy companies approve to purchase the production machines valued at $10,000. The average operating costs is $ 1,500 per year. The predicted annual benefit is $2000 and will increase every year by 10% from the first annual benefit. However, in the 5th period, overhaul will be carried out at a cost of $ 1200 and after 10 years the machine can be sold for $ 2000. If the annual rate of return is 8%, analyze investment proposal using BCR and PII
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