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Ness Construction Company: must purchase a Semi-Assembly Equipment with the following is known about the Equipment and possible cash flows Data and estimate Probity. _p
Ness Construction Company: must purchase a Semi-Assembly Equipment with the following is known about the Equipment and possible cash flows Data and estimate Probity. _p = 0.30 p = 0.50 p=0.20 Initial costs $40,000 $40,000 $40,000 Annual savings 2,000 3,500 5,000 Yearly Maintenance 7,000 5,000 4,000 Actual salvage value 4,000 5,000 6,500 The Equipment is expected to have a useful life of 10 years with a MARR of 6%. Determine the NPW of the Equipment? Explain in detail your work; Set up, Formula, Calculation, and recommendation
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