A company is considering the purchase of new equipment. Data concerning the alternative under consideration are presented below.
First Cost: -$15,000
Annual Income: $30,000
Annual Costs: -$6,000
Recalibration at end of Year 3: -$2,000
Salvage Value: $6,000
If the equipment has a life of six years and the company’s minimum attractive rate of return (MARR) is 15%, what is the annual worth of the equipment?