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A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000.Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual of new income that must be realized at an interest rate of 5% per 6-month period? $4019.27 $4019.47 O $4019.67 $4019.87 O No correct answer

A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000.Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual of new income that must be realized at an interest rate of 5% per 6-month period? $4019.27 $4019.47 O $4019.67 $4019.87 O No correct answer

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000.Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual of new income that must be realized at an interest rate of 5% per 6-month period? $4019.27 $4019.47 O $4019.67 $4019.87 O No correct answer
Transcribed Image Text:A small metal plating company wants to become involved in electronic commerce. A modest e-commerce package is available for $20,000.Semiannual updates and site maintenance will cost $300. The salvage value of the package is estimated to be $1500 after 3 years. If the company wants to recover its total cost in 3 years, what is the equivalent semiannual of new income that must be realized at an interest rate of 5% per 6-month period? $4019.27 $4019.47 O $4019.67 $4019.87 O No correct answer
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