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You can purchase a new piece of equipment for $45,000 that will result in an increase in sales (after deducting the cost of sales) of
You can purchase a new piece of equipment for $45,000 that will result in an increase in sales (after deducting the cost of sales) of $8000 per year for the next 8 years. Assuming a required rate of return of 8%, is this an opportunity you should pursue? You are part of an income-tax-exempt enterprise.
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