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tara.harris.9 tara.harris.9
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3 months ago
You are looking to replace an old machine X with a new machine Y.
The two machines, X and Y, which perform the same functions, have the following costs and lives.

PV CostsLife
Machine X$10,0005
Machine Y$11,5007

Which machine would you choose? Assume an opportunity cost of capital of 15%.

▸ Buy the new machine Y.

▸ Keep the old machine X.

▸ Indifferent

▸ Neither
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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relisabethrelisabeth
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3 months ago
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tara.harris.9 Author
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3 months ago
Thank you, thank you, thank you!
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This site is awesome
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