The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a piece of new GPS equipment. Data concerning the alternative under consideration are presented below. First Cost $28,000 Annual Income 7,000 Annual Costs 2,500 Recalibration at end of Year 4 4,000 Salvage Value 2,800 If the equipment has a life of eight years and MAP's minimum attractive rate of return (MARR) is 5%, what is the annual worth of the equipment?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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The
survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a piece
of new GPS equipment. Data concerning the alternative under consideration are presented below.
First Cost $28,000
Annual Income 7,000
Annual Costs 2,500
Recalibration at end of Year 4 4,000
Salvage Value 2,800
If the equipment has a life of eight years and MAP's minimum attractive rate of return (MARR) is
5%, what is the annual worth of the equipment?
Transcribed Image Text:The survey firm of Layer, Anderson, and Pope (MAP) LLP is considering the purchase of a piece of new GPS equipment. Data concerning the alternative under consideration are presented below. First Cost $28,000 Annual Income 7,000 Annual Costs 2,500 Recalibration at end of Year 4 4,000 Salvage Value 2,800 If the equipment has a life of eight years and MAP's minimum attractive rate of return (MARR) is 5%, what is the annual worth of the equipment?
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