You are considering add equipment at your plant for an original cost of $40,000. Your MARR is 15%. The useful life of the equipment is $10,000 and you expect Operations and Maintenance costs each year to run $2000. If you can gain $6000 in net income from the addition, should you make the purchase?

Draw the cash flow diagram, complete the chart as shown below, and solve the problem in your EXCEL spreadsheet.

Prob	Rate	NPER	PMT	PV	FV	Solve For	Answer

YES , The useful life of the equipment is $10,000