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Question 5(15 pts ). A firm is considering which of two devices to install to reduce costs. Both devices have useful lives of 4 years
Question 5(15 pts ). A firm is considering which of two devices to install to reduce costs. Both devices have useful lives of 4 years and no salvage value: Device A costs $1500 and can be expected to result in $500 savings annually. Device B costs $2000 and will provide cost savings of $500 the first year but will increase $100 annually, making the second-year savings $600, the third-year savings $700, and the fourth-year savings $800. For a 7% MARR, which device should the firm purchase
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