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Determine which equipment should the company purchase

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Reference no: EM133041518

Question - Let a company is considering the purchase of two different pieces of equipment, X and Y. Cash outflows for equipment X are $15,000 in year 0 and $5000 in year 1. Cash outflows for equipment Y are $18,000 in year 0, and $10,500 per year for year 1, 2 and 3. Determine which equipment should the company purchase? Show your workings.

Reference no: EM133041518

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