The initial cost of a project is $40,000. The operating costs of this investment in year 1

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The initial cost of a project is $40,000. The operating costs of this investment in year 1 is $3,000 which increases by 2% each year thereafter. Given the interest rate, 8%, determine the year in which the geometric increase ends.

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Corporate Finance

ISBN: 9781265533199

13th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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Posted Date: Apr 07, 2024 01:12 AM

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The initial cost of a project is $40,000. The operating costs of this investment in year 1

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Answer seems the information about the 8 interest rate might not be relevant to finding the year whe... View the full answer

Corporate Finance

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