Is the equivalent annual wörth of a 20 year project that has a $2 million initial cost, annual pperating costs of $75,000 and annual benefits of $250,000? Assume a discount rate of 7.2%. -$188,501 -$18,210 -$16,730 -$174,520 $174,520
Is the equivalent annual wörth of a 20 year project that has a $2 million initial cost, annual pperating costs of $75,000 and annual benefits of $250,000? Assume a discount rate of 7.2%. -$188,501 -$18,210 -$16,730 -$174,520 $174,520
Chapter1: Making Economics Decisions
Section: Chapter Questions
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![What is the equivalent annual worth of a 20 year project that has a $2 million initial cost, annual
operating costs of $75,000 and annual benefits of $250,000? Assume a discount rate of 7.2%.
-$188,501
-$18,210
O-$16,730
O$174,520
O$174,520](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F15c22c02-a3a9-49b9-b857-642a5ba16fee%2F29699e43-0ba3-4807-be72-8d1099227899%2F3ix7363_processed.jpeg&w=3840&q=75)
Transcribed Image Text:What is the equivalent annual worth of a 20 year project that has a $2 million initial cost, annual
operating costs of $75,000 and annual benefits of $250,000? Assume a discount rate of 7.2%.
-$188,501
-$18,210
O-$16,730
O$174,520
O$174,520
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