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Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a 12% discount rate. Option

Anthony Walker is evaluating two new business opportunities. Each of the opportunities shown below has a 15-year life. Anthony uses a 12% discount rate. Option 1 Option 2 Equipment purchase and installation $70,300 $82,160 Annual cash flow $28,400 $30,400 Equipment overhaul in year 6 $4,920 - Equipment overhaul in year 8 - $6,340

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