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Denton Printing Inc. must buy a printing machine. The company can choose between three machines. Model A has a net present value of $35,000 and
Denton Printing Inc. must buy a printing machine. The company can choose between three machines. Model A has a net present value of $35,000 and will last 7 years. Model B has a net present value of $45,000 and will last 10 years. Model C has a net present value of $50,000 and will last 15 years. You may assume that future replacements will be new versions of the same model. The company cost of capital is 15%.
The value maximizing decision is to purchase
Group of answer choices
Model A.
Model C.
None of these models.
Model B.
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