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Problem 2: (Exercise 6.5 is modified). Initial Cost: ($300,000) The Study Period: 15 years Salvage (Market) Value of the Project: 20% of the initial cost
Problem 2: (Exercise 6.5 is modified). Initial Cost: ($300,000) The Study Period: 15 years Salvage (Market) Value of the Project: 20% of the initial cost Operating costs in the first year: ($7,500) Operating costs increase by 5% per year Benefits in the first year: $30,000 Benefit increase by 13% per year MARR: 15% per year (25pts)Construct the Net Cash Flow Table. (15pts)Determine the NPW. (15pts) is the Project acceptable? WHY
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