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An unavoidable cost may be met by outlays of $14,000 now and $1,700 at the end of every six months for seven years or by
An unavoidable cost may be met by outlays of $14,000 now and $1,700 at the end of every six months for seven years or by making monthly payments of $760 in advance for seven years. The interest rate is 14% compounded annually.
Net Present Value (NPV) for Alternative 1 = Answer
Net Present Value (NPV) for Alternative 2 = Answer
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