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Posted on Jul 22, 2024

Your company buys a piece of equipment for $ 1 0 , 0 0 0 which has a 1 0 year service life, $ 1

Your company buys a piece of equipment for $ $10, 000$ which has a $10$ year service life, $ $1000$ per year maintenance cost starting $1$ year after purchase and through the service life of the equipment. The cost of capital for your company is $4 % .$ The salvage value is $ $2, 000 .$ What is the NPV for this piece of equipment?

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