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Annual energy costs are rising at 20%/year, while general inflation is running 3.9%. Allied Energy offers an energy-saving device that would have saved $600 last
Annual energy costs are rising at 20%/year, while general inflation is running 3.9%. Allied Energy offers an energy-saving device that would have saved $600 last year, with savings proportional to energy costs. What will be the present worth of the total energy savings if the estimated life of this device is the next 10 years and money has a combined time value (considering general inflation and real return) of 12%? $
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