Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $70000 for 15 years and to have a resale value of $130000 at the end of that period. Assume a 11% rate and earnings at year end. The present value of 1 at 11% for 15 periods is 0.20900. The present value of an ordinary annuity at 11% for 15 periods is 7.19087. The future value of 1 at 11% for 15 periods is 4.78459.
Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $70000 for 15 years and to have a resale value of $130000 at the end of that period. Assume a 11% rate and earnings at year end. The present value of 1 at 11% for 15 periods is 0.20900. The present value of an ordinary annuity at 11% for 15 periods is 7.19087. The future value of 1 at 11% for 15 periods is 4.78459.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $70000 for 15 years and to have a resale value of $130000 at the end of that period. Assume a 11% rate and earnings at year end. The present value of 1 at 11% for 15 periods is 0.20900. The present value of an ordinary annuity at 11% for 15 periods is 7.19087. The future value of 1 at 11% for 15 periods is 4.78459.
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