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Q6) Lobo is a leading manufacturer of positronic brains, a key component in robots. The company is considering two alternative production methods. The costs and

Q6) Lobo is a leading manufacturer of positronic brains, a key component in robots. The company is considering two alternative production methods. The costs and lives associated with each are shown in the following table. Ignore depreciation and taxes in answering. The required rate of return is 0.11. If Lobo replaces the equipment, which method should it buy

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