Find the present worth of a piece of equipment that has a first cost of $150,000, an

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Find the present worth of a piece of equipment that has a first cost of $150,000, an annual operating cost of $60,000, and a salvage value of 20% of the first cost after 5 years. Assume that the real interest rate is 10% per year, that the inflation rate is 7% per year, and that inflation is to be accounted for. Also, assume that all costs are future dollar estimates.

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Basics Of Engineering Economy

ISBN: 9780073376356

2nd Edition

Authors: Leland T. Blank, Anthony Tarquin

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