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A machine was purchased 5 years ago at the cost of $25000. It can be sold now for $6000. If the machine is kept for 5 more years, it is anticipated that the machine can be sold for $1000. a.) At a cost of capital of 12%, what is the present value of the cost of keeping and running the machine for 5 years, then disposing of it? Show the related equivalence formula(s)?

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Financial Management, Finance

Category:- Financial Management
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