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Business, 26.03.2020 23:24 strevino9178

The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10 percent for the next 7 years. The overhead cost at the end of the fi rst year is $200,000. What is the annual worth of the overhead costs for the 7-year period? The time value of money rate is 8 percent/year.

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