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3.30 A new software package is expected to improve productivity at Grand Insurance. However, because of training and implementation costs, savings are not expected to
3.30 A new software package is expected to improve productivity at Grand Insurance. However, because of training and implementation costs, savings are not expected to occur until the third year of operation. At that time, savings of $10,000 are expected, increasing by $1000 per year for the following five years. After this time (eight years from implementation), the software will be abandoned with no scrap value. How much is the software worth today, at 15% interest? 3.34 Gail has won a lottery that pays her $100,000 at the end of this year, $110,000 at the end of the next year, $120,000 the following year, and so on, for 30 years. Leon has offered Gail $2,500,000 in exchange for all the money she will receive. If Gail can get 8% interest on her savings, is this a good deal
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