Purchase some equipment for your factory

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Reference no: EM131999360

You would like to purchase some equipment for your factory. You have the option of purchasing the equipment today, in 5 years, or in 10 years. Which option should you choose based on the present value of each option? Assume an interest rate of 10%.

1. Today: $385,500

2. 5 Years: $620,873

3. 10 Years: $1,000,000

Reference no: EM131999360

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