Determine the pw index at eight percent, Microeconomics

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Determine the pw index at eight percent

Problem

ABC Block Co. may buy a new machine that has a first cost of $10K. It will produce benefits for each of the next 6 years of $3000 while requiring $1400 to operate. ABC uses a PW index that is calculated by dividing the PW of benefits by the PW of costs. Determine the PW index at 8%.

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