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(A) a company want to purchase a new equipment, price= $10,000,000 . it will save $2,000,000 annually compared to the present equipment. its' economic life is 12 years. the company requires a return at least 20% . taxes are disregarded

(B) the company bought the equipment but 2 years later a better machine is on the market. cost $20,000,000 over the cost of operating the (A) equipment. the economic life of (B) is 10 years. taxes are disregarded.

WHAT ACTION SHOULD THE COMPANY TAKE?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92787557

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