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ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. If net cash flow is estimated at $500,000 per year, and
ABB purchased fieldbus communication equipment for a project in South Africa for $3.15 million. If net cash flow is estimated at $500,000 per year, and a salvage value of $400,000 is anticipated, determine how many years the equipment must be used just to break even at interest rates ranging from 8% to 15% per year. Solve using (a) tabulated factors, and (b) a spread- sheet.
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