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212 The installation of a compressor is estimated to generate the following net cash flows. The effective date of the evaluation is July 1, 2021.

image text in transcribed 212 The installation of a compressor is estimated to generate the following net cash flows. The effective date of the evaluation is July 1, 2021. The projections shown are based on a calendar year. a) Using mid-period discounting, find the present worth of the net cash flows as of July 1, 2021, at 12% compounded annually. Assume all cash flows (in or out) occur at the middle of the period. b) If your company has a time value of money of 12% (nominal annual compounded annually), should you recommend the compressor installation if it will cost $40,000.00 (on July 1, 2021)? c) Using end-period discounting what is your recommendation

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