6. An amateur photographer buys equipment for $2000. The new business generates $600 of revenue in the first year, and it is hoped that there will be increases of $100 per year for the next 3 years. At the end of the 4 years, the equipment will have a salvage value of $ 200. What is the present worth of this project, assuming 5% annual interest?

6. An amateur photographer buys equipment for $2000. The new business generates $600 of revenue in the first year, and it is hoped that there will be increases of $100 per year for the next 3 years. At the end of the 4 years, the equipment will have a salvage value of $ 200. What is the present worth of this project, assuming 5% annual interest?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3EA: If a copy center is considering the purchase of a new copy machine with an initial investment cost...

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