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You can purchase an optical scanner today for $490. The scanner provides benefits worth $75 a year. The expected life of the scanner is 10
You can purchase an optical scanner today for $490. The scanner provides benefits worth $75 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 25% per year. Suppose the discount rate is 11%. When is the best time to purchase the scanner? (Round your answer to the nearest cent.) |
NPV is maximized when you wait (Click to select) 0 1 2 3 4 6 5 7 8 9 10 years to purchase the scanner. At this date NPV will be equivalent to $ today. |
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