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Estimates that the remodeling will cost

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Jack's Lock and Key is considering remodeling. It estimates that the remodeling will cost $6,000 and that as a result revenues will rise by $3,000 thefirst year, $2,500 the second year, $1,500 the third year and have no effect afterthen. If the interest rate is 5%, should Jack's remodel?

Reference no: EM131263267

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