The investment cost is $23,889 and the equipment will have a market value of $5,060 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $8,352 per year after extra operating costs have been subtracted from the revenue generated by the additional production. If the firm's MARR is 20% per year, What is the Present Worth (PW) for this proposal?
The investment cost is $23,889 and the equipment will have a market value of $5,060 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $8,352 per year after extra operating costs have been subtracted from the revenue generated by the additional production. If the firm's MARR is 20% per year, What is the Present Worth (PW) for this proposal?
Chapter9: Capital Budgeting Techniques
Section: Chapter Questions
Problem 11PROB
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The investment cost is $23,889 and the equipment will have a market value of $5,060 at the end of a study period of five years. Increased productivity attributable to the equipment will amount to $8,352 per year after extra operating costs have been subtracted from the revenue generated by the additional production. If the firm's MARR is 20% per year, What is the Present Worth (PW) for this proposal?
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