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Mayberry

Economics

Mayberry. Inc.. is considering a design change that will cost S6.000 and will result in an annual savings of 51.000 per year for the 6-year life of the project. A cost of $2.000 will be avoided at the end of the project as a result of the change. MARR is 8%.
What is the annual worth of this investment? 
 
 

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