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J. F. & Sons must choose between four pieces of equipment. Equipment A has an NPV of $30,000 and a useful life of 3 years.
J. F. & Sons must choose between four pieces of equipment. Equipment A has an NPV of $30,000 and a useful life of 3 years. Equipment B has an NPV of $50,000 and a useful life of 7 years. Equipment C has an NPV of $45,000 and a useful life of 5 years. Equipment D has an NPV of $60,000 and a useful life of 4 years. If the firm typically uses a discount rate of 10% when making such decisions, which equipment should be chosen? Equipment D Equipment A Equipment C O Equipment B
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