To calculate the net present value, convert all future and repeated cash flows into present value. Given the following cash flows and an interest rate of 2%, calculate the net present value of the alternative. Round your answer to the nearest dollar. Initial Cost: $822 Annual Benefit: $76 for 24 years Salvage Value: $272 at end of year 24

To calculate the net present value, convert all future and repeated cash flows into present value. Given the following cash flows and an interest rate of 2%, calculate the net present value of the alternative. Round your answer to the nearest dollar. Initial Cost: $822 Annual Benefit: $76 for 24 years Salvage Value: $272 at end of year 24

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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