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Present value of upgrading one unit of equipment

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You are deciding whether or not to upgrade some of your firm's equipment. The current gear produces $597.17 in profit per year per unit, and the new gear is expected to produce $883.3 in profit per year per unit. The upgrade would cost $3,217 per unit. If the discount rate is 12.4% and the equipment is expected to operate indefinitely, what is the net present value of upgrading one unit of equipment? Round to the nearest penny.

Reference no: EM131942242

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