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It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials costs. The equipment has an expected life
It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials costs. The equipment has an expected life of five years and no market value. If the company must earn a 15% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company's viewpoint
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