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Bonita Inc is considering purchasing equipment costing $25000 with a 7-year useful life. The equipment will provide cost savings of $5500 and will be depreciated

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Bonita Inc is considering purchasing equipment costing $25000 with a 7-year useful life. The equipment will provide cost savings of $5500 and will be depreciated straight-line over its useful life with no salvage value. Bonita Inc. requires a 8% rate of return. What is the approximate net present value of this investment? Present Value of an Annuity of 1 8% 10% ZX 2% Period 7 13% 4.423 5.582 5.389 5.206 5.033 4.868 O $19500 O $3633 $2682 O $4640

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