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The management of Fine Electronics Company is considering to purchase an equipment to be attached with the main manufacturing machine. The equipment will cost $8,000
The management of Fine Electronics Company is considering to purchase an equipment to be attached with the main manufacturing machine. The equipment will cost $8,000 and will create annual cash inflow $4,000. The useful life of the equipment is 4 years. What will the NPV of the project? What will be your recommendation about the project? The rate of return is 20%.
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