You are thinking of building a new machine that will save you $ 1 comma 000 in
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Question:
You are thinking of building a new machine that will save you
$ 1 comma 000
in the first year. The machine will then begin to wear out so that the savings decline at a rate of
4 %
per year forever. What is the present value of the savings if the interest rate is
3 %
per year?
The present value is
$
.
(Round to the nearest dollar.)
Expert Answer:
Posted Date:
