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Compute the net present value

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Question - Replacing old equipment at an immediate cost of $150,000 and an additional outlay of ?$30,000 five years from now will result in savings of ?$28,000 per year for 10 years. The required rate of return is 11?% compounded annually. Compute the net present value and determine if the investment should be accepted or rejected according to the net present value criterion.

Reference no: EM133162179

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