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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
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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