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Should NewTech's computer system be replaced this year? The system has a salvage value now of $5000, which will fall to $4000 by the end
Should NewTech's computer system be replaced this year? The system has a salvage value now of $5000, which will fall to $4000 by the end of the year. The cost of lower productivity linked to the older computer is $3000 this year. NewTech uses an interest rate of 15%. What is the cost advantage of the best system? A potential new system costs $12,000 and has the following salvage values and lost productivity for each year 0 $12,000 9,000 7,000 5,000 3,000 1000 2000 3000 4
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