It is estimated that a certain piece of equipment can save


It is estimated that a certain piece of equipment can save $22,000 per year in labor and materials costs. The equipment has an expected life of ?ve years and no market value. If the company must earn a 15% annual return on such investments, how much could be justi?ed now for the purchase of this piece of equipment? Draw a cash-?ow diagram from the company's viewpoint

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Business Economics: It is estimated that a certain piece of equipment can save
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