Question: Exercise #5: A digital printer costs $12,000. It can generate production savings of $4,000 for 5 years. If you wait to buy one year, next
Exercise #5: A digital printer costs $12,000. It can generate production savings of $4,000 for 5 years. If you wait to buy one year, next years model will cost $11,500 and will generate production savings of $4,500 per year for 5 years. The cost of capital is 12%. Should you buy now or wait?
NPVBuy = $ [15]..
NPVWait = $ [16]
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