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Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $30,000 six years from now will result in savings of $3,000
Replacing old equipment at an immediate cost of $50,000 and an additional outlay of $30,000 six years from now will result in savings of $3,000 per quarter for 12 years. The required rate of return is 10% compounded annually. Determine the net present value and if the investment should be accepted or rejected.
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