With inflation and without inflation

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Reference no: EM13866625

A 10-year project is evaluated under two scenarios: (i) with inflation, and (ii) without inflation. Without inflation under 10% interest rate its present worth is $24,729. If annual inflation of 2% is assumed, then the project's present worth becomes 19% lower. It is also known that the project has first cost, no operating costs, the depreciation rate of 12%, and it brings annual revenue. What is the project's first cost?

Reference no: EM13866625

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