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ABC Corporation wants to buy a new warehouse inventory system. They expect the savings (cash flows) generated in the next five years to be generated

ABC Corporation wants to buy a new warehouse inventory system. They expect the savings (cash flows) generated in the next five years to be generated as per Table 1. The value of the inventory system is $70,000 and ABC Corp. cost of capital is 11%. Year /Cash flows 0 1 10,000 2 35,000 3 30,000 4 20,000 5 5,000 Total 100,000

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