Te equivalent annual worth eaw is most


A product is expected to earn $25,000 at the end of the first year, and to decrease $500 each subsequentyear. This product is going to be in service five (5) year. The market value at the end of five years is $5,000. At an interest rate of return of 5% the equivalent annual worth (EAW) is most nearly:
a) EAW= $24,953.61
b) EAW= $14,048
c)EAW= $16,855.95

d)EAW= $14,953.60

Solution Preview :

Prepared by a verified Expert
Microeconomics: Te equivalent annual worth eaw is most
Reference No:- TGS0920474

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)