Equivalent cost to the company of this transaction

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Reference no: EM131854363

A firm purchased some equipment at a price of $50 000. The equipment resulted in an annual net savings of $ 2000 per year during the 10 years it was used. At the end of 10 years, the equipment was sold for $40 000. draw a cash-flow diagram that depicts this situation. Assuming i=8%, what was the equivalent cost to the company of this transaction on the purchase date?

Reference no: EM131854363

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