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Anthony operates a part-time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $17,000 in year
Anthony operates a part-time auto repair service. He estimates that a new diagnostic computer system will result in increased cash inflows of $17,000 in year 1, $25,000 in year 2, and $28,000 in year 3. If Anthony requires a return of 16% on all investment projects, then the most he would be willing to pay for the new computer system would be: (ignore taxes)
a. $39,891 b. $40,653 c. $39,182 d. $51,177
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