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1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save SI0,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) b) Calculate the rate of return by using Excel.

1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save SI0,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) b) Calculate the rate of return by using Excel.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) b) Calculate the rate of return by using Excel.
Transcribed Image Text:1. XYZ company planned that $500,000 be spent on software and hardware to improve the efficiency of the database systems. This is expected to save $10,000 per year for 10 years in energy costs and $700,000 at the end of 10 years in equipment costs. a) Write the required equation for finding the rate of return by using factors. (You are not expected to find the rate of return value) b) Calculate the rate of return by using Excel.
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