Tis enables db to increase its profitability by 3000 per

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A company must decide if it should move division DA to a new location. If division DA moves, it will be housed in a new building that reduces its operating costs by $10,000 per year forever. The new building costs $120,000. Moving division DA allows division DB to expand within the old factory. This enables DB to increase its profitability by $3,000 per year forever. If the discount rate is 10%, should division DA move?

Reference no: EM13481260

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