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To improve crack detection in aircrafts, the U.S. Air Force combined ultrasonic inspection procedures with laser heating to identify fatigue cracks. Early detection of cracks may reduce repair costs by as much as $200,000 per year. If the savings start now and continue through year 5, what is the present worth of these savings at an interest rate of 10% per year?

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Solution Summary

This solution analyzes the present worth of savings at an interest rate of 10% per year in the following case.

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