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Portland Savings and Loan is considering new computer software, which because of installation and training cost will have an unusual pattern of net receipts. The
Portland Savings and Loan is considering new computer software, which because of installation and training cost will have an unusual pattern of net receipts. The expected receipts are: $20,000 in year one; nothing in the next year, $30,000 in year three, and $50,000 in the fourth year. At an interest rate of 6 percent, what is the present value of these receipts?
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