Determine the equivalent annual worth of this investment


The expected income is 10,000, the first year and increases 100 every year thereafter. Its useful life is 6 years. A company purchases a piece of manufacturing equipment for rental purposes. Expenses are estimated to be 2,000 annually. The purchase price is 75,000 and there is a salvage value of 10,000. Determine the equivalent annual worth of this investment alternative with an interest rate of 6%?

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Macroeconomics: Determine the equivalent annual worth of this investment
Reference No:- TGS0870490

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