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Pleas esolve Let's assume ABC Company is planning to purchase a special equipment capable to do certain operations that are now performed manually. This equipment

Pleas esolve

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Let's assume ABC Company is planning to purchase a special equipment capable to do certain operations that are now performed manually. This equipment will cost $80,000 and it will last for four years. Use of the equipment will reduce labour costs by $24,000 in year 1, $21,000 in year 2, $20,000 in year 3, and $18,500 in year 4. Discount rate for this investment project is 12%. Should the equipment be purchased? Use the net present value (NPV) method in your calculation. Select one: O a. No, NPV is $(15,837.64) O b. Yes, NPV is $26,891.14 O c. No, NPV is $(24,921) O d. Yes, NPV is $12, 134.68

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