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It is estimated that a certain piece of equipment can save $23,000 per year in labor and materials costs. The equipment has an expected life
It is estimated that a certain piece of equipment can save $23,000 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 18% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? The company can justify spending up to $squarebox for this piece of equipment. (Round to the nearest cent.)
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