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Shaji H Alhadaisan Chapter 10 and 13 Review Problem #1 Abbott Mining Systems wants to determine whether it should buy now or buy later for
Shaji H Alhadaisan Chapter 10 and 13 Review Problem #1 Abbott Mining Systems wants to determine whether it should buy now or buy later for upgrading a piece of equipment used in deep mining operations. If the company selects plan N, the equipment will be purchased now for $200,000 Howev 3 years when the cost is expected to rise rapidly to $340,000. Abbott is ambi- tious, it expects a real MARR of 12% per year. The inflation rate in the coun- try has averaged 6.75% per year. From only an economic perspective, de whether the company should purchase now or later (a) when inflation is not considered and (b) when inflation is considered er, if the company selects plan L, the purchase will be deferred for termine
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