A company is considering the purchase of a new piece of, Business Economics

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A company is considering the purchase of a new piece of

A company is considering the purchase of a new piece of equipment. The new equipment is expected to reduce manufacturing costs by $20,000 per year for 2 years, and by $15,000 per year for years 3 through 6. What is the present worth of these cost savings using an interest rate of 18% per year?

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