Determine if the packaging equipment should be purchased

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Packaging equipment for Xi Cling Wrap costs $60,000 and is expected to result in end of year net savings of $23,000 per year for 3 years. The equipment will have a market value of $10,000 after 3 years. The equipment can be leased for $21,000 per year, payable at the beginning of each year.. Xi Cling's MARR is 10% per year. Based on an annual worth analysis, determine if the packaging equipment should be purchased or leased

Reference no: EM131165662

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