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Aline has three contracts from which to choose. The first contract will require an outlay of $120,000but will return $198,000 one year from now. The
Aline has three contracts from which to choose. The first contract will require an outlay of $120,000but will return $198,000 one year from now. The second contract requires an outlay of $240,000 and will return $372,000 one year from now. The third contract requires an outlay of $310,000 and will return $452,500 one year from now. Only one contract can be accepted. If her MARR is 20 percent, which one should she choose?
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