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A company buys a piece of equipment that cost $10000. This piece of equipment will last 10 years and at the end of those 10 years it will have a salvage value of $1500. Each year there are $1000 in operation and maintenance cost and the company’s total revenue is increased by $2000 a year. Was this a smart investment for the company if the interest rate is equal to 4%?

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Financial Management, Finance

Category:- Financial Management
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