5. 2.6 During a recession, the price of goods and services goes down because of low demand....

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5. 2.6 During a recession, the price of goods and services goes down because of low demand. A company that makes Ethernet adapters is planning to expand its production facility at a cost of $1,000,000 one year from now. However, a contractor who needs work has offered to do the job for $790,000 if the company will do the expansion now instead of one year from now. If the interest rate is 15%

per year, what is the difference in the present worth of the two amounts?

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Basics Of Engineering Economy

ISBN: 9781259683312

3rd Edition

Authors: Leland T. Blank, Anthony Tarquin

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