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Question # An investment of $25,000 in new equipment will generate income of S7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. What is the rate of return of the investment? Use trial and error (start with two trials with 5% and 10% interest rates) and then use interpolation (or more trials) to approximate the result.

Question # An investment of $25,000 in new equipment will generate income of S7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. What is the rate of return of the investment? Use trial and error (start with two trials with 5% and 10% interest rates) and then use interpolation (or more trials) to approximate the result.

Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question # 3 (17%) An investment of $25,000 in new equipment will generate income of S7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. What is the rate of return of the investment? Use trial and error (start with two trials with 5% and 10% interest rates) and then use interpolation (or more trials) to approximate the result.
Transcribed Image Text:Question # 3 (17%) An investment of $25,000 in new equipment will generate income of S7000 per year for 3 years, at which time the machine can be sold for an estimated $8000. What is the rate of return of the investment? Use trial and error (start with two trials with 5% and 10% interest rates) and then use interpolation (or more trials) to approximate the result.
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