The cost of the low-emission replacement equipment is


The cost of the low-emission (replacement) equipment is $50,000 for each of the companys two existing production lines, totaling $100,000, if the company insatlled the equipment in both production lines. There does not appear to be additional revenue or cost savings that the new equipment will generate. Calculate the NPV with a discount rate of 10%. Is this a good investment alternative?

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Financial Econometrics: The cost of the low-emission replacement equipment is
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