An industrial firefighting truck costs $100,000. Savings in insurance premiums and uninsured losses from the acquisition and operation of this equipment is estimated at $60,000/yr. Salvage value of the apparatus after 5 yrs. is expected to be $20,000. A full-time driver during operating hours will accrue an added cost of $10,000/yr. @ 40% present worth @ 50% present worth

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A: here we calculate the interest earned by simple interest so the calculation as follow-

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Q: 10,000 per year – at

A:

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