Your company plans to acquire one of two assets. Assets A cost $162,500, and has expected annual

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Your company plans to acquire one of two assets. Assets A cost $162,500, and has expected annual cash savings of $37.500. Assets B cost $225,000 and has expected annual cash saving of $77,500. You'll use straight- line depreciation for both assets of zero. Your minimum desired rate of return is 14%, and the present value factor is 3.4331. Ignoring income taxes, calculate the net present value for both assets. Which asset would you advise buying? Why?
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