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Fred's Widget Company has purchased $1,000,000 in equipment, which can be sold for a salvage value of $700,000 at any time.The best interest rate on

Fred's Widget Company has purchased $1,000,000 in equipment, which can be sold for a salvage value of $700,000 at any time.The best interest rate on alternative investments is 10%. What is the cost of using this machinery for one year?How would your answer be different if the machinery had not yet been purchased?

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