Future revenues by the cost

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New Tech uses a PW index that divides the PW of all future revenues by the cost in year 0 (PWI1). What is the index value for the following project if i = 12%? The first cost is $180K.Annual revenues are $25K initially, and they increase by $2K per year. Annual costs are $5K. The salvage value is zero after 10 years. (Answer: .853)

Reference no: EM131809466

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