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Three mutually exclusive projects A, B, and C are presented. Project A is a 1-year project and costs $580,000 at beginning of each year. Project B is a 2-year contract and requires $350,000 payment every 6 months beginning now ( 4 equal payments total each cycle). Project C is a 3-year contract and requires $1,000,000 now and $150,000 one year later. Assume all contracts can be renewed at the same conditions and an annual interest rate of 8%, compounded semiannually, using present worth analysis what is the present worth of project A, B, and C (For 6-year period).

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92640034

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