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Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual 0&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000.

Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual 0&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual O&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000. %3D
Transcribed Image Text:Determine the net present worth of a facility at an interest rate of 4% with a life span of 15 years provided the following: Initial cost = $1,500,000 Annual O&M = $36,000 that increases $2000 per year. Additional maintenance at year 10 = $50,000 Salvage value = $2,750,000. %3D
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