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An asset with an expected life of 4 years is to be purchased for $5,000. Annual revenue is estimated at $2,000 with annual expenses of
An asset with an expected life of 4 years is to be purchased for $5,000. Annual revenue is estimated at $2,000 with annual expenses of $800. At the end of the 4th year, the asset is expected to be sold for $900. The interest rate is 10%. Use the AW method to determine whether the asset should be purchased or not. Include a table of inflow and outflow of cash if needed.
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