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Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $340,000. The company can
Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $340,000. The company can borrow $340,000 for three years at 12 percent annual interest or for one year at 10 percent annual interest. Assume interest is paid in full at the end of each year.
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