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Does your analysis support the student purchasing computer

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Problem - Divide your team into two groups. In one group, find a local business, such as a copy shop that rents time on desktop computers for an hourly rate. Determine the hourly rate. In the other group, determine the price of a mid-range desktop computer at. Combine this information from the two groups and perform a capital budgeting analysis. Assume that one student will use the computer for 40 hours per semester for the next three years. Also assume that the minimum rate of return is 10%. Use the present value tables provided in Appendix A in performing your analysis. Does your analysis support the student purchasing the computer? Why or why not?

Reference no: EM132772351

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