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Q1. A project constructed in one year is estimated to cost S.R. 7.8 million with an economic life of 50 years. Estimates of its earnings
Q1. A project constructed in one year is estimated to cost S.R. 7.8 million with an economic life of 50 years. Estimates of its earnings are made as follows: Years after Completion 1-5 6-10 Thereafter Annual Return (S.R.) 200,000 400,000 800,000 What discount rate will give equal benefits and costs? (This may require trial and error.)
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