What is the index value for the given project

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Reference no: EM132164964

Question: Calculate PWI2 for below given Problem.

Problem: New Tech uses a PW index that divides the PW of all future revenues by the cost in year 0 (PWI1). What is the index value for the following project if i = 12%? The first cost is $180K.Annual revenues are $25K initially, and they increase by $2K per year. Annual costs are $5K. The salvage value is zero after 10 years.

Reference no: EM132164964

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