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4. Ten years ago LSU offered to buy LaTech for 500 million. LSU offered 350 million down and the remaining balance at the end of

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4. Ten years ago LSU offered to buy LaTech for 500 million. LSU offered 350 million down and the remaining balance at the end of year 1. LSU's salary payments to faculty would be 1.5 million annually starting year 1 and continue throughout the ownership. Today LSU would only be able to sell LaTech for a profit of 100 million. Calculate LSU's capital recovery and annual worth if they had made the deal at a MARR of 12%. (10pts)

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