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Determine whether the project is economically attractive

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Reference no: EM133151375

Question - A plastic Toys Plant is expected to require an initial investment of $500,000 and annual maintenance expensive of $80,000. The benefits to the owner are valued at $100,000 per year. This project can be assumed to have an expected life of 10 years. If the opportunity cost or the minimum attractive rate of return (MARR) is 10% per year, determine whether the project is economically attractive?

Reference no: EM133151375

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