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7. A proposed project will cost $1,000 two years from today. Beginning at the end of year five, $300 in annual benefits will
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Answer #1

i = 5%

The present year worth of the project

= -1000*(P/F,5%,2)+300*(P/A,5%,5)*(P/F,5%,4)

= -1000*0.907029+300*4.329477*0.822702

= -907.029+1068.5608

= 161

option(D)

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