Should move division a

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A company must decide if it should move division A to a new location. If division A moves, it will be in a new building that reduces its operating costs by $8,000 per year. The new building costs $150,000. Moving division A allows division B to expand within the old factory. This enables B to increase its profitability by $5,000 per year. The discount rate is 8%, should division A move?

Reference no: EM131478553

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