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You (many years ago) are deciding whether to upgrade your company's equipment from typewriters to computer technology at a cost of $2,500 per machine, and
You (many years ago) are deciding whether to upgrade your company's equipment from typewriters to computer technology at a cost of $2,500 per machine, and machines will be replaced one-to-one. The typewriter technology was able to output $8,000 per unit per year, and you expect the computers to be able to output $9,156 per unit per year (forever), but render the typewriters completely worthless. What would the NPV be of making this upgrade, per upgraded unit? Assume a 11.1% interest rate. (4 decimal places)
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