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I have a friend who owns a home business of cloth diapers. She was mentioning...

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Accounting

I have a friend who owns a home business of cloth diapers. She was mentioning about investing more in equipment to make more diapers. For example, the equipment needed would costs around $10,000 from the bank at 5% interest rate to buy a new sawing machine. The new investment will earn her about $2,600 a year. The equipment lifetime is about 3 years. Equipment salvageable price is $3,000. What will the cash flow be?

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