Seven years ago a New Brunswick logging company purchased a used wood chipperfor $117,000 for biomass and custom chipping. Operating and maintenance costsaveraged $4,300 per year. A complete overhaul at the end of year 4 cost additional$11,000. Annual revenue from using the chipper was $27,000 per year. Calculatethe annual worth of the chipper at 7% interest rate
Seven years ago a New Brunswick logging company purchased a used wood chipperfor $117,000 for biomass and custom chipping. Operating and maintenance costsaveraged $4,300 per year. A complete overhaul at the end of year 4 cost additional$11,000. Annual revenue from using the chipper was $27,000 per year. Calculatethe annual worth of the chipper at 7% interest rate
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Seven years ago a New Brunswick logging company purchased a used wood chipperfor $117,000 for biomass and custom chipping. Operating and maintenance costsaveraged $4,300 per year. A complete overhaul at the end of year 4 cost additional$11,000. Annual revenue from using the chipper was $27,000 per year. Calculatethe annual worth of the chipper at 7% interest rate
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