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Should the cars be replaced after three years

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Question - A company is considering the optimal replacement strategy for its fleet of cars. Each car costs $ 15 000, its net salvage value after three years is $ 10 000, after four years $ 8 500, and after five years $ 6 000. Using the discounted rate of 8 %, should the cars be replaced after three, four, or five years? Show all calculations in excel.

Reference no: EM133172858

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