A theft-avoidance locking system has a first cost of $25,000, an AOC of $17,000, and...
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A theft-avoidance locking system has a first cost of $25,000, an AOC of $17,000, and no salvoge value after its 3-year ife. Assume that you were fold the service provided by this asset would be needed for only 5 years. This means that the asset will have to be repurchased and kept for only 2 years. What would its market value, call it M, have to be after 2 years in order to make its annual worth the same as it is for its 3 -year life cycle at an interest rate of 10% per year? Determine the market value M using factors The market value M is $
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