Determine the Net Present Worth of a piece of equipment that is needed over an analysis period of 6 years given the following information:
Show your work on your work sheet. Answer the question rounded to the nearest $100 using the following format $XXXX
Initial Cost
|
$25000
|
Annual Cost
|
$500
|
Annual Savings
|
$10500
|
Salvage Value at end of life
|
$3500
|
Life Span of Equipment
|
3 years
|
MARR=
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8%
|