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Your company is considering replacing an old piece of equipment for a new one. The new piece of equipment is expensive and will require costly
Your company is considering replacing an old piece of equipment for a new one. The new piece of equipment is expensive and will require costly maintenance, but it will also increase future revenues due to higher productivity. Which of the following statements is correct? Your company should purchase the new equipment if the present value of the expected cash outflows is higher than the present value of the expected cash inflows Your company should purchase the new equipment if the future value of the expected cash inflows is higher than the present value of the expected cash outflows Your company should NOT purchase the new equipment if the purchase cost of the asset is less than the present value of the expected maintenance cost None of the answer choices is correct
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