Question: John's project has a five-year term, a first cost, no salvage value and annual savings of $20,000. After doing present worth and annual worth calculations
John's project has a five-year term, a first cost, no salvage value and annual savings of $20,000. After doing present worth and annual worth calculations with a 20 % interest rate, John noticed that the calculated present worth for the project is equal to the annual worth multiplied by three. What is the project's first cost?
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