Dele the dollar value for each scenario and select option

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Reference no: EM131354265

Goodyear Tire and Rubber Corporation has three options of whether to purchase a piece of equipment now or wait and buy it in the near future. The MARR requirement for the plant real return of 15% per year. If an inflation rate of 4% per year must be accounted for, dele the dollar value for each scenario and select the best option.

a) Purchase the equipment for $80,000 now:

b) Purchase it 3 years from now for $128,000:

c) Purchase it 5 years from now that has the same buying power as $160,000 now

Reference no: EM131354265

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