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An earthmoving contractor is evaluating whether to use a larger excavator toreduce current operating costs. The excavator can be purchased at $135,000 and is expected
An earthmoving contractor is evaluating whether to use a larger excavator toreduce current operating costs. The excavator can be purchased at $135,000 and is expected to have a useful life of 5 years after which it can be sold for $25,000. The optimistic, most likely, and pessimistic projections of annual savings in operating costs are $40,000 $30,000. and $14.000, respectively. Use the range of estimates method to compute the mean annual savings, and then determine the present worth of purchasing this excavator at 7% Interest. 12pt v Paragraph
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