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Tempura, Inc., is considering two projects. Project A requires an investment of $58,000. Estimated annual receipts for 20 years are $25,000; estimated annual costs are $12,500. An alternative project, B, requires an investment of $83,000, has annual receipts for 20 years of $23,000, and has annual costs of $18,000. Assume both projects have a zero salvage value and that MARR is 8.0%/year.

What is the present worth of each project?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91228531

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