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A consultant recommends that a bio-containment vessel be replaced. The existing one's capital recovery is $2000...

A consultant recommends that a bio-containment vessel be replaced. The existing one's capital recovery is $2000 a year. The newly purchased would be $11,000 with salvage value of $5000 in five years. Do you agree at MARR of 7%?
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YES

NO

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Answer #1

As NPV >0, the project will be accepted.

Answer is Yes

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