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2. Find the present worth of a program using a piece of equipment that has a first cost of $150,000 an annual operating cost of

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2. Find the present worth of a program using 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 the inflation is to be accounted for. Also, assume that all costs are future dollar estimates

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