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A company is considering buying a new piece of equipment for $40,000. It is expected to save $12,000 per year for the next 10 years and have a salvage value of $2,000 at the end of 10 years. The machine will require a one-time rehab for $10,000 after 5 years. If the MARR is 10% per year compounded yearly, should the company by the machine?

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Financial Management, Finance

Category:- Financial Management
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