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Company A is contemplating on purchasing an equipment for $100,000. Its expected useful life is 8 years, at which time its market value will be
Company A is contemplating on purchasing an equipment for $100,000. Its expected useful life is 8 years, at which time its market value will be $10,000. Annual receipts less expenses will be approximately $20,000 per year over the 8-year study period. Use the Annual Worth method and an MARR of 15% to determine whether this purchase is a good move. Show cash flow diagram as well. Thank you!
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