Question
Given the following cash flows and discount rate of 10%, should the old machine be replaced with the new one? The new machine will cost
Given the following cash flows and discount rate of 10%, should the old machine be replaced with the new one? The new machine will cost $10,000. The old machine will cost $1,000 to dispose of.
| Year | Old | New |
| 1 | $1000 | $4000 |
| 2 | $2000 | $5 |
| 3 | $3000 | $6000 |
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
