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A company must decide if it should move division A to a new location. If division A moves, it will be housed in a new building that reduces its operating costs by $10,000 per year forever. The new building costs $120,000.Moving division A allows division B to expand within the old factory. This enables B to increase its profitability by $3,000 per year forever. If the discount rate is 10%, should division A move?

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Financial Accounting, Accounting

Category:- Financial Accounting
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