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V-Tek Systems is a manufacturer of vertical compactors, and it is examining its cash flow requirements for the next 5 years. The company expects to replace office machines and computer equipment at various times over the 5-year planning period. Specifically, the company expects to spend $9000 two years from now, $8000 three years from now, and $5000 five years from now. What is the present worth of the planned expenditures at an interest rate of 10% per year?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M945086

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