Consider an investment in a project having a first cost of

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Consider an investment in a project having a first cost of $500,000, operating and maintenance costs of $35,000 per year, a profit of $50,000 per year, and an estimated disposal cost of $10,000(toxic chemicals) at the end of 15 years.

A) Assuming an interest rate of 6%, what is the present equivalent cost of the investment?

B) Assuming an interest rate of 6%, whatis the equivalent annual cost of the investment?

C) Assuming an interest rate of 2%, what is the equivalent annual cost of the investment?

Reference no: EM13618302

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