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1. For the following cash flow compute: Investment Annual Operating Cost Annual Revenues $98,000 40,000 60,000 Operating cost will increase by G=$800 annually from

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1. For the following cash flow compute: Investment Annual Operating Cost Annual Revenues $98,000 40,000 60,000 Operating cost will increase by G=$800 annually from the second year until the 6 year. Salvage Value at the end of 6 year Investment life n-6 years MARR= 10% 1. Draw the cash-flow diagram 20,000 2. Determine if the cash-flow is viable or not using the 5 rules of chapter 5: a. PW b. AW c. FW d. IRR (Use 6%) e.ERR

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