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Projects with a positive net present value (NPV) are economically feasible. Compute the NPV of the two (2) systems below. Use 8% interest yield. Project
Projects with a positive net present value (NPV) are economically feasible. Compute the NPV of the two (2) systems below.
Use 8% interest yield.
Project completion time Expected useful life of system One-time costs Recurring costs incurred in beginning of Years 1 through 5 Annual tangible benefits incurred in end of Years 1 through 5 System A System B 1 year 1 year 5 years 5 years 300,000 140,000 45,000 55,000 170,000 135,000
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