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Consider a project that costs $126,000 immediately to begin. From there on, at the end of every year, it provides an income of $70,000 for
Consider a project that costs $126,000 immediately to begin. From there on, at the end of every year,
it provides an income of $70,000 for each of the next 5 years. At the end of the fifth year when the
last payout is received, it costs $225,000 to dispose of the project. Should the project be undertaken
at a 0% discount rate? How about 2%? 5%? 10%?
Can you explain the steps? I don't understand when it says P/A(5%,5) or P/F(5%,5)
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