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Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 16% per year: Initial investment: $240,000 Equipment

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Consider a piece of equipment that has the following cost and benefit estimates, and the interest rate is 16% per year: Initial investment: $240,000 Equipment life: 11 years Salvage value: $12,000 Annual receipts: $130,000 Annual expenses: $55,000 What is the modified B/C ratio of this equipment

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