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Cost of equipment: $80,000 Expected annual cost savings to be provided by new equipment: $32,000 Useful life of the equipment: 6 years Salvage value at

Cost of equipment: $80,000 Expected annual cost savings to be provided by new equipment: $32,000 Useful life of the equipment: 6 years Salvage value at the end of 6 years: $5000 Cost of capital: 16% Required: A. What would be the net present value (NPV) of new equipment

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