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value 2.75 points TB MC Qu. 08-52 (Ignore income taxes in this problem.) Peter wants... Jack and Jill have a business (Humpty, Inc.) and they
value 2.75 points TB MC Qu. 08-52 (Ignore income taxes in this problem.) Peter wants... Jack and Jill have a business (Humpty, Inc.) and they need to buy a new, faster computer to support their increased level of business. They believe the purchase of this computer will save them $5,000 each year in costs. The computer will last for five years, and at the end of five years, it will have no salvage value. If Jack and Jill have a required rate of return is 5%. What is the maximum price they should be willing to pay for the computer now? Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables (Ignore income taxes in this problem.) O $25,000 $21,645 $18,565 O $18,055
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