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An engineer has been offered an investment opportunity that will require an immediate cash outlay of $ 4 0 , 0 0 0 for a
An engineer has been offered an investment opportunity that will require an
immediate cash outlay of $ for a cash inflow of $ for each year of
investment. However, she must state now the number of years she plans to
retain the investment. Additionally, if the investment is retained for years, a
lumpsum amount of $ will be returned to her; after years, the lump
sum return is anticipated to be $ and after years, it is estimated to
be $ Money is currently worth per year. Determine the present
worth values for years, years, and years, and decide if the decision is
sensitive to the retention period?
The present worth when the investment is retained for years is $
The present worth when the investment is retained for years is $
The present worth when the investment is retained for years is $
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