Assume that the opportunity cost of capital is 12 percent, Financial Management

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Assume that the opportunity cost of capital is 12 percent

Little Rhody Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $70,000 and is expected to last 6 years, and the second system costs $102,000 and is expected to last 9 years. Assume that the opportunity cost of capital is 12 percent. Which air-conditioning system should you purchase?

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Financial Management: Assume that the opportunity cost of capital is 12 percent

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Financial Management: Assume that the opportunity cost of capital is 12 percent

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