State whether the company should invest and why

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Question: I would like to get your input on a piece of equipment we are considering that should help our productivity. The investment will cost us $250,000. It has a useful life of 20 years. Even after the 15 years, it can be salvaged for $10,000. It should help us to generate cash flows of $330,000. The cash outflows for operating costs will be $200,000. Do you think that this would be a good investment for us?

State whether the company should invest and why.

Reference no: EM133342167

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