Maximum amount fabco should be willing to pay for valves

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Fabco, Inc., is considering purchasing flow valves that will reduce annual operating costs by $10,000 per year for the next 12 years. Fabco's MARR is 7 percent/year. Using an internal rate of return approach, determine the maximum amount Fabco should be willing to pay for the valves.

Reference no: EM131552573

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