Question: Project Initial cost - $130 Salvage Value After 7-year service life - $35 Operation and Maintenance cost - 45$ in the first year, then increasing
Project Initial cost - $130
Salvage Value After 7-year service life - $35
Operation and Maintenance cost - 45$ in the first year, then increasing by 5$ each year after.
Projects expected annual benefit: 90$
Is this project a desirable investment if the Minimum Acceptable Rate of Return is 25%?
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