Company has option of building warehouse now

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A company has the option of building a warehouse now or building it three years from now. The cost now would be $700,000, but three years from now the cost is estimated to be $900,000. If the company’s MARR (real i) is 20 % per year and the inflation rate is 7 % per year over the next three years, what is the present worth cost today of the $900,000  building purchased three years now when inflation is considered? (Enter your answer as a number without the dollar $ sign.)

Reference no: EM131603137

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