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Mathematics, 14.03.2022 22:30 claytonhopkins

Current advertising expense is $3,600 per year. Wages run $15,000 per year. The owner feels he can do better if he increases advertising by 10% per year over the next two years, which will allow him to reduce his wage expense by 5% each year for the same period. If he uses a 5% interest rate for his decisions, what is the net present value of this option?

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