Would this be a good use of capital

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Question - Assume that a new piece of equipment could allow 25% of the labor force in Question 1 to be eliminated. Using a 173-hour working month for each employee, a total equipment cost of $60,000 (which has a useful life of 3 years), and ignoring the effect of cash flow and time value of money, would this be a good use of capital?

Reference no: EM133188312

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