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Noon Computers is deciding whether to invest in prevention costs for its servers. Data regarding the decision between investing or not is as follows:

Noon Computers is deciding whether to invest in prevention costs for its servers. Data regarding the decision between investing or not is as follows: Invest in Prevention Do Not Invest Cost of Equipment $ 175,000 Working capital investment $ 25,000 required $ Annual Activity Annual Sales $ 294,000 $175,000 (assume all cash) Annual Cash Expenses Repair Costs $ 14,000 $ 35,000 Depreciation $ 21,875 $

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