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12. The efficiency gains resulting from a just-in-time inventory management system will allow a firm...

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12. The efficiency gains resulting from a just-in-time inventory management system will allow a firm to reduce its level of inventories permanently by $250,000. What is the most the firm should be willing to pay for installing the system? Assume that the firm will be around forever and that the firm's cost of capital is 10% per year, compounded annually

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