Could you solve/fill the blank?Homework Answers
1)
Let us calculate the present worth of cost (PW1), if expansion is carried out after 1 year is given by
PW1=$110000/(1+11%)=$990990.99
Price if expansion is carried out now=PW=$830,000
Discount offered=990990.99.10-83000=$160990.99
2)
Next years' equivalent bonus =4000*(1+15%)+4000=$8600
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Could you solve/fill the blank?
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