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If the interest rate is 8% per year, what decision would you make based on the decision tree diagram in the figure below? Click the
If the interest rate is 8% per year, what decision would you make based on the decision tree diagram in the figure below? Click the icon to view the decision tree diagram. Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8% per year. 5 Calculate the PW value for the New Product. PW New Product (8%) = $(thousand (Round to one decimal place.) Based on the PW values, should be recommended. (0.6) $200,000 profit per year for eight years, starting at EOY 3 - $1.000.000 at / 2, Introduce New Product Do Nothing $280.000 profit per year for eight years, starting at EOY 3 $0 profit/yr. for 8 years Year 0
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