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You are in the market for a new refrigerator for your company’s lounge. You have narrowed the search down to 2 models. The energy efficient model sells for $700 and will save you $45 at the end of each of the next 5 years in electricity costs. The standard model has the same features as the energy efficient model, but no savings in electricity costs. It is priced only at $500. Assuming that the discount rate is 6% and each refrigerator will last 5 years (and have the same scrap value), which refrigerator you should purchase

Financial Management, Finance

  • Category:- Financial Management
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