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A company purchase a piece of manutacturing equipment for rental purposes. The expected annual income is $7.100. Its useful e is 4 years Expenses are estimated to be $1,600 annually. It the purchase price is $20,000 and the salvage value is $2.000. What is the present worth of this investment altemative? Oa PW = $2.835 Ob PW-$3935 Oc PW- $2935 Od PW= 51,835

A company purchase a piece of manutacturing equipment for rental purposes. The expected annual income is $7.100. Its useful e is 4 years Expenses are estimated to be $1,600 annually. It the purchase price is $20,000 and the salvage value is $2.000. What is the present worth of this investment altemative? Oa PW = $2.835 Ob PW-$3935 Oc PW- $2935 Od PW= 51,835

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A company purchase a piece of manutacturing equipment for rental purposes. The expected annual income is $7.100. Its useful life is 4 years. Expenses are estimated to be $1,600 annually. If the purchase price is $20,000 and the salvage value is $2.000. What is the present worth of this investment alternative? Oa. PW- $2.835 Ob. PW = $3,035 Oc PW- $2,935 Od PW = 51,835
Transcribed Image Text:A company purchase a piece of manutacturing equipment for rental purposes. The expected annual income is $7.100. Its useful life is 4 years. Expenses are estimated to be $1,600 annually. If the purchase price is $20,000 and the salvage value is $2.000. What is the present worth of this investment alternative? Oa. PW- $2.835 Ob. PW = $3,035 Oc PW- $2,935 Od PW = 51,835
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