4 (b). Investment in a crane is expected to produce profit from its rental of $15,000 the first year it is in service. The profit is expected to decrease by $2,500 each year thereafter. At the end of six years assume the salvage value is zero. At 12% interest the present worth of the profits is nearest to what?
4 (b). Investment in a crane is expected to produce profit from its rental of $15,000 the first year it is in service. The profit is expected to decrease by $2,500 each year thereafter. At the end of six years assume the salvage value is zero. At 12% interest the present worth of the profits is nearest to what?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4 (b). Investment in a crane is expected to produce profit from its rental of $15,000 the first year
it is in service. The profit is expected to decrease by $2,500 each year thereafter. At the end of
six years assume the salvage value is zero. At 12% interest the present worth of the profits is
nearest to what?
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