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TR Company is considering replacing some of its equipment. The company analyzed the future cash flows and the expected costs for each piece of equipment
TR Company is considering replacing some of its equipment. The company analyzed the future cash flows and the expected costs for each piece of equipment and came up with three options. The options and the cost of financing each option is listed below: Option A Year Cash Flow Comment 2021 $ (1,000,000.00) Includes installation costs 2022 $ 100,000.00 2023 $ 300,000.00 2024 $ 100,000.00 2025 $ 400,000.00 2026 $ 100,000.00 2027 $ 100,000.00 2028 $ 50,000.00 2029 $ 400,000.00 Includes salvage value Cost of Financing 11%
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