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Table 10-1. Capital Budgeting Choices Capital Cumulative Business Investment Investment Location Costins Costs 1 25,000 25,000 2 28,500 53,500 3 32,500 86,000 4 32,500 118,500
Table 10-1. Capital Budgeting Choices Capital Cumulative Business Investment Investment Location Costins Costs 1 25,000 25,000 2 28,500 53,500 3 32,500 86,000 4 32,500 118,500 5 45,000 163,500 6 54,000 217,500 7 63,250 280.750 B 73,000 353 750 Net Present Value 27,500 35,000 35,000 38,000 (15,000 (10,000) 92.000 100,000 Refer to Table 10-1, Glen Write owns an engineering firm. He asked his employees for suggestions regarding equipment they thought the firm would need during the next year. They suggested the purchase of eight pieces of equipment, Glen calculated the net present value of each recommendation, Glenn has a policy of purchasing only one item per year. Based on NPV, which should he purchase
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