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Hillary Corp. Is evaluating the purchase of a new equipment for $25 million. The equipment is expected to generate a cost savings of $10 million
Hillary Corp. Is evaluating the purchase of a new equipment for $25 million. The equipment is expected to generate a cost savings of $10 million per year for the next five years. If the discount rate is 5.2% is it beneficial for Hillary to acquire the equipment? Yes, as it has a net present value (NPV) of $11 million. No, as it has a net present value (NPV) of $4 million. Yes, as it has a net present value (NPV) of $18 million. No, as it has a net present value 2 million
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