Question
The investment in a construction equipment is expected to produce profit from its rental as shown below, over the next 5 years. Assume the salvage
The investment in a construction equipment is expected to produce profit from its rental as shown below, over the next 5 years. Assume the salvage value is zero. What is the present worth of the investment, assuming 12% interest?
| year | 0 | 1 | 2 | 3 | 4 | 5 |
| profit/ cost($) | -35000 | 10000 | 8000 | 9000 | 7000 | 10000 |
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Cost And Management Accounting An Introduction
Authors: Colin Drury
7th Edition
1408032139, 978-1408032138
