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A company invested in a new piece of equipment that has a first cost of $150,000, an annual operating cost of $50,000, and a salvage
A company invested in a new piece of equipment that has a first cost of $150,000, an annual operating cost of $50,000, and a salvage value of $25,000 after 5 years. Assume that the real interest rate is 10% per year, that the inflation is 5% per year. The present worth of the equipment is closest to: $325,631.18 $424,623.73 $253,479.84 $303,479.84
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