1. An investment of $12,000 for 25 years at 6% nominal interest is done, with an...

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1. An investment of $12,000 for 25 years at 6% nominal interest is done, with an expected revenues determine by arithmetic gr

business economics

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Answer 1

Answer #1

1.

R = 6%

PW = -12000 + 1200*(P/G, 6%, 23)*(P/F, 6%, 2)

PW = -12000 + 1200*104.701*.89

PW = $99820.67 or $99821

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Answer 2

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