What is the present worth of the machinery if the market


The Wildwood Widget Company needs a milling machine for its new assembly line. The machine presently costs $85,000, but has a costinflation rate of 2%. Widget will not need to purchase the machine for 2 years. If general inflation is expected to be 4% per year during those 2 years, determine the price of the machine. What is the present worth of the machinery if the market rate of interest for Widget is 9%?

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Business Economics: What is the present worth of the machinery if the market
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