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If our owner increases his current advertising expense of $2,400 per year by 10%, he can reduce his annual labor cost of $7,200 by 5%.

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If our owner increases his current advertising expense of $2,400 per year by 10%, he can reduce his annual labor cost of $7,200 by 5%. He is using a 5 -year horizon at 5% interest. What is the net present value of this decision? Negative $600 Negative $519 Positive $600 Positive $519 Question 10 (1 point) Our owner has now embraced technology. He believes he can increase his annual sales of $40,000 by 10% if he upgrades his website, which will cost $400 today and $500 per year to maintain. If he is using 3 years as his decision horizon and an interest rate of 3%, what is the net present value of his decision? $9,902 $10,500 $9.502 $11,445

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