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Business, 22.06.2021 14:00 christopherschool04

A 24-hour music network plans to add satellite technology to allow its expansion into other major southern markets. The network expects the monthly revenue to increase by $380,000 from new cable subscription fees. The satellite will require an initial cost of $2 million with monthly operating and maintenance costs of $340,000. It will have a $122,000 salvage value after 6 years. Calculate the net present worth of this investment at an interest rate of 4% per year, compounded continuously.

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