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A company has purchased a piece of equipment today for $5,000. It is expected that theequipment...

A company has purchased a piece of equipment today for $5,000. It is expected that theequipment will save them $1000 beginning in year 5 with the savings increasing by $200 eachyear thereafter. The equipment will require $1000 worth of maintenance in year 6. Given theequipment has a life of 10 years will the company recover their investment? Assume an interestrate of 6%. Draw the cash flow diagram.

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