A firm purchased some equipment at a very favourable price, Business Economics

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A firm purchased some equipment at a very favourable price

A firm purchased some equipment at a very favourable price of $30,000. The equipment reduced costs by $1000 per year during 8 years of use. After 8 years, the equipment was sold for $40,000. Assuming interest at 9%, did the equipment purchase prove to be desirable?

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Business Economics: A firm purchased some equipment at a very favourable price

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