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A company has just spent $112,000 in purchase of new equipment for its production business. This equipment is expected to generate an additional $45,000 in
A company has just spent $112,000 in purchase of new equipment for its production business. This equipment is expected to generate an additional $45,000 in annual profit in the first year. The annual profit is projected to increase by 4% each subsequent year up to 10 years, the service life of the equipment. Calculate the present worth of this investment if the profits can earn an interest rate of 10% per year. A. $209,976 B. $452,180 C. $723,124 D. $202,180
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