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Ten years ago, an investor purchased a project for $265,000. He anticipated a salvage value of $50,000 after 10 years. During this time, his average
Ten years ago, an investor purchased a project for $265,000. He anticipated a salvage value of $50,000 after 10 years. During this time, his average annual revenue totaled $52,000. (a) Did he recover his investment and a 12% per year return? Assume the annual M&O cost was $10,000 the first year and increased by a constant $1000 per year. The recovery cost is closest to:
A. | -44051 | |
B. | -44351 | |
C. | -44151 | |
D. | -44251 |
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