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corie corie
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6 years ago
Sally's Fitness is considering installing new exercise equipment.  If she does so, she expects the payment stream in the table below before the equipment must be replaced.  To finance the equipment purchase, she must take out a loan at 9%.  Does the equipment investment offer a positive net present value?

Year   Cashflow   Present Value
0   -$12,500   
1   $4,000   
2   $4,000   
3   $4,000   
4   $4,000   
5   $4,000
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Microeconomics

Microeconomics


Edition: 8th
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CanihCanih
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#1
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6 years ago
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corie Author
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6 years ago
Just got PERFECT on my quiz
Marcie D
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Yesterday
You make an excellent tutor!
Holly72492
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2 hours ago
Thanks
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