Dividing the pw of benefits by the pw of costs

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Question: ABC Block Co. may buy a new machine that has a first cost of $10K. It will produce benefits for each of the next 6 years of $3000 while requiring $1400 to operate. ABC uses a PW index that is calculated by dividing the PW of benefits by the PW of costs. Determine the PW index at 8%.

Reference no: EM131806721

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