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Which air-conditioning system should you purchase

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Reference no: EM133011396

Question - Little Rhody Manufacturing needs to purchase a new central air-conditioning system for a plant. There are two choices. The first system costs $70,000 and is expected to last 6 years, and the second system costs $102,000 and is expected to last 9 years. Assume that the opportunity cost of capital is 12 percent. Which air-conditioning system should you purchase? Show your work.

Reference no: EM133011396

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