Find the equivalent present worth of the following 6-year project using the following data; purchase and installation cost, $100,000; maintenance per year, $10,000; energy saving per year, $45,000; salvage value, $20,000. Assume that the minimum attractive rate of return is 12%/year.
Find the equivalent present worth of the following 6-year project using the following data; purchase and installation cost, $100,000; maintenance per year, $10,000; energy saving per year, $45,000; salvage value, $20,000. Assume that the minimum attractive rate of return is 12%/year.
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
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Find the equivalent present worth of the following 6-year project using the following data; purchase and installation cost, $100,000; maintenance per year, $10,000; energy saving per year, $45,000; salvage value, $20,000. Assume that the minimum attractive
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