What is the most you should be willing to pay to repair

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Your company's conveyor belt has broken and you have to decide whether to fix it or buy a new one. You ordinarily buy a new belt every ten years, and you have had the current one for seven years. New conveyor belts cost $21,000. Your firm's discount rate for valuing cash flows is 8%. What is the most you should be willing to pay to repair the current belt? Salvage values and taxes are ignored.

Reference no: EM133113930

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