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Required information

ABB purchased fieldbus communication equipment for a project in South Africa for $$3\mathrm{.}15$ million. The net cash flow is

estimated at $$500,000$ per year, and a salvage value of $$400,000$ is anticipated.

Determine how many years the equipment must be used just to break even at interest rates ranging from $8\%$ to $15\%$ per year. Solve

using a spreadsheet.

The spreadsheet function used for finding the number of years is

and the equipment must be

used for

years just to break even at an interest rate of $8\%.$

The spreadsheet function used for finding the number of years is

and the equipment must be

used for

years just to break even at an interest rate of $9\%.$

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$,$ and the equipment must be

used for

years just to break even at an interest rate of $10\%.$

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used for

years just to break even at an interest rate of $11\%.$

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used for

years just to break even at an interest rate of $12\%.$

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years just to break even at an interest rate of $13\%.$

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used for

years just to break even at an interest rate of $14\%.$

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used for

years just to break even at an interest rate of $15\%.$

and the equipment must be

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