Chapter 7: Net Present Value and Capital Budgeting

Cash Flow Chart: Year 0 Year 1 Year 2 Year 3 Year 4 1. Sales revenue - $7,000 $7,000 $7,000 $7,000 2. Operating costs - 2,000 2,000 2,000 2,000 3. ... The project requires annual maintenance of $5,000, beginning a year from now. The cost is treated as a three-year annuity, discounted at 0.12. Remember to adjust the maintenance cost for taxes ... ................
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