Johns project has a five year term a first cost no salvage


Question: John's project has a five year term, a first cost, no salvage value, and annual savings of $20000. After doing present worth and annual worth calculations with a 17% interest rate, John noticed that the calculated present worth for the project is exactly three times the annual worth. What is the project's first cost?

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Microeconomics: Johns project has a five year term a first cost no salvage
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