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You are going to purchase a piece of equipment that cost $92,000 today that is expected to reduce annual operating costs by $20,000 each year
You are going to purchase a piece of equipment that cost $92,000 today that is expected to reduce annual operating costs by $20,000 each year for the next 5 years. At the end of 5 years you plan to sell the equipment for a $10,000 salvage. The annual discount rate is 8%. Round all dollars to the nearest whole dollar (e-g. 1,300) and enter values greater than three digits with a comma. Enter all nterest rates to the nearest hundredth (e.g. .07) and omit the percent sign. Enter all cash outflows with a negative sign. For aables that do not apply in this problem enter NA in the space. Present value abFuture value10000 bs Payment-92000
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