
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Transcribed Image Text:You are offered a device that uses
machine learning to improve
performance. You expect it to produce
monthly cash flows for you as follows: $
10K, $40K, $70K, $100K. After 4
months, it will be obsolete and useless (
but good news...no disposal cost). Your
discount rate is 12% nominal annual.
Neglecting tax and depreciation, what
would you pay for this device, in $K? (No
dollar sign or comma, so $15,500 would
be 15.5; $100,000 would be 100.)
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