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"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint."

"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint."

Elements Of Electromagnetics
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint." A 105854.35 B 93234.14 159395.71 D 116424.41 E) 181780.34
Transcribed Image Text:"It is estimated that a certain piece of equipment can save $24259 per year in labor and materials costs. The equipment has an expected life of 12 years and no market value. If the company must earn a 8.11% annual return on such investments, how much could be justified now for the purchase of this piece of equipment? Draw a cash-flow diagram from the company s viewpoint." A 105854.35 B 93234.14 159395.71 D 116424.41 E) 181780.34
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