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Companies net cash flow at annual interest rate

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Reference no: EM132077249

Practice question

Manager of a computer company plans to spend on new hardware $4.5 million in the first year with amounts decreasing by $0.4 million each year thereafter. Income of the company is expected to be $4.0 million the first year increasing by $0.1 million each year thereafter. Determine the annual worth over the years 1 through 5 of the companies net cash flow at annual interest rate of 10%.

Reference no: EM132077249

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