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The required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $22 million
The required investment cost of a new, large shopping center is $50 million. The salvage value of the project is estimated to be $22 million (the value of the land). Theproject's life is 17 years and the annual operating expenses are estimated to be $18 million. The MARR for such projects is 15% per year. What must the minimum annual revenue be to make the shopping center a worthwhile venture?
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