Should imost company purchase the attachment

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Reference no: EM132974322

Problem 1: The company that sold the equipment to iMost Company now makes an attachment for the equipment that is expected to reduce direct labor expenses by 12% per year. The attachment will cost the company $15,000 and can be used for the remaining useful life of the machinery. Ignore the impact of income taxes. Should iMost Company purchase the attachment?

Reference no: EM132974322

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