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Associated with a firms planned purchase of new $250,000 equipment is an immediate decrease in inventory of $60,000. Should this figure be ignored in a
Associated with a firms planned purchase of new $250,000 equipment is an immediate decrease in inventory of $60,000. Should this figure be ignored in a capital budgeting analysis of the new equipment? Explain. What about the $50,000 cash that the firm already has that will reduce the equipment cost to $200,000?
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