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You and a group of friends have purchased an annual lease at a commercial fishing...

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Accounting

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You and a group of friends have purchased an annual lease at a commercial fishing pond for the last several years. It is possible to renew the lease for up to 5 years. Based on past costs, you calculated the AW values for different lease periods. Current Lease Renewal, years AW Value, $ per year -9200 2 -8100 3 -8700 14 -8900 -9500 Another lease option, a few miles further from your home, is available with an economic service life of 7 years and an AW of $-9400 Assuming all future costs remain unchanged, when should you renew the current lease? You value your recreation highly by using a MARR of 25% per year. The current lease should be renewed in years

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