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Q. 4: Your employer decided to purchase an equipment with SR 285,000. He estimates that the annual revenue generated by this decision will be SR
Q. 4: Your employer decided to purchase an equipment with SR 285,000. He estimates that the annual revenue generated by this decision will be SR 52,000 per year. The equipment will be sold after ten years for SR 50,000. If the interest rate is 12%, determine the following: a) Draw the cash flow diagram that depicts this scenario. b) Did your employer recover his investment? c) If this equipment requires annual maintenance that costs SR 10,000 for the first year and then increases by a constant amount of SR 1,000 per year, was the annual worth positive
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