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Consider a piece of equipment for which the expenditure at the beginning of period 1 is $20,000. The cost at the end of year 1 is $5,000. The cost at the end of year 2 is $7,000 The cost at the end of year 3 is $5,000 The interest rate is 5%. What is the net present cost of purchasing and operating this asset for three years?

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Financial Management, Finance

Category:- Financial Management
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