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An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR is 15% per year, the following equation can be used to solve for it is: 0 -20,000(P/A,1,3)+ 7000+8000(A/F1,3) Select one: O True O False

An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR is 15% per year, the following equation can be used to solve for it is: 0 -20,000(P/A,1,3)+ 7000+8000(A/F1,3) Select one: O True O False

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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An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR is 15% per year, the following equation can be used to solve for i* is: 0= -20,000 (P/A,1,3)+ 7000+8000(A/F1,3) Select one: O True O False Which statement is incorrect regarding the use of factors? O a. F is at the same year of the last A. O b. P is at the same year of the first A. OC. A should be consecutive amounts O d. A are equal amounts of money.
Transcribed Image Text:An investment of $20,000 in new equipment will generate income of $7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. If the company's MARR is 15% per year, the following equation can be used to solve for i* is: 0= -20,000 (P/A,1,3)+ 7000+8000(A/F1,3) Select one: O True O False Which statement is incorrect regarding the use of factors? O a. F is at the same year of the last A. O b. P is at the same year of the first A. OC. A should be consecutive amounts O d. A are equal amounts of money.
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