Which plans to scrap the equipment and retire

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Reference no: EM131918602

Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $150,000. Bill expects the after-tax cash inflows to be $35,000 annually for 5 years, after which he plans to scrap the equipment and retire. The required return is 10 percent. What do you recommend? Why?

Reference no: EM131918602

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