1. A firm purchased some equipment at a very favorable price of $30,000. The equipment resulted in an annual net saving of $1000 per year during the eight years it was used. At the end of eight years, the equipment was sold for $40,000. Assuming interest is 8%, did the equipment purchase prove to be desirable? (8 marks)

(Hint: Calculate the benefits & the costs of the equipment that was purchased, EUAB, EUAC to find EUAW)