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Alp Inc. is evaluating the purchase of new equipment with an expected life of 10 years. At the end of the fifth year, Alp expects

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Alp Inc. is evaluating the purchase of new equipment with an expected life of 10 years. At the end of the fifth year, Alp expects to spend $5,000 to repair the equipment. The company's tax rate is 30% and its after-tax required rate of return is 8%. The alter-tax present value of the repairs is closest to

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