1 The amount of money that Diamond Systems can spend now for improving productivity in lieu...

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Answer 1

Answer #1

The present equivalent worth of $30,000 three years from now at an interest rate of 12% = $30,000(F/P, 12%, 3)

= $30,000 * 1/(1+0.12)3

= $30,000/1.123

= $21,353

Ans: (d) $21,353

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Answer 2

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