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Southern California Publishing Company is trying to decide whether or not to revise its popular textbook Financial Psychoanalysis Made Simple. It has estimated that the

Southern California Publishing Company is trying to decide whether or not to revise its popular textbook Financial Psychoanalysis Made Simple. It has estimated that the revision will cost $90,000. Cash flows from increased sales will be $20,100 the first year. These cash flows will increase by 5 percent per year. The book will go out of print six years from now. Assume that the initial cost is paid now and revenues are received at the end of each year.

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