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Sandhill Inc. is considering investing in a piece of equipment that could generate the following expected cash flows: Year 1: Year 2: Year 3:

Sandhill Inc. is considering investing in a piece of equipment that could generate the following expected cash flows: Year 1: Year 2: Year 3: Year 4: Year 5: $52300 $41100 $29300 $21200 $8300 What is the maximum price Sandhill should consider based on the future cash flows assuming a discount rate of 12%?

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