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Neighbors Company is considering the purchase of new equipment that will cost $ 1 3 5 , 5 0 0 . The equipment will save

Neighbors Company is considering the purchase of new equipment that will cost $135,500. The equipment will save the company $39,600 per year in cash operating costs. The equipment has an estimated useful life of five years and a zero expected salvage value. The company's cost of capital is 10%.(PV of $1 and PVA of $1)

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