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b . ( 1 ) What is the present value of owning the equipment? ( Hint: Set up a time line that shows the net

b.(1) What is the present value of owning the equipment? (Hint: Set up a time line that shows the net cash flows
over the period t=0 to t=4, and then find the PV of these net cash flows, or the PV of owning.)
(2) What is the discount rate for the cash flows of owning?
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