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You plan to open a coffee shop that requires the upfront cost for $50,000. You expect to receive $20,000 annual revenue. You estimate that the
You plan to open a coffee shop that requires the upfront cost for $50,000. You expect to receive $20,000 annual revenue. You estimate that the utility costs will be $15,000 in the first year and increase by $1,000 per year. The estimated market value of this investment at the end of year five is $20,000, and the interest rate is 10%. What is the annual equivalent worth of this investment ?
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