Morgana Bowles is respons

Morgana Bowles is respons

Morgana Bowles is responsible for buying some specialized manufacturing equipment that has a purchase price of $9000 and annual operating costs of $1000. The vendor is offering a special buyer incentive that provide free maintenance for the first three years. After that time, the maintenance is $500 per year over the 10-years life, and there is an overhaul expense in year 5 of $3000. The equipment has salvge value of $2000. If the interest rate is 8%, what is the present worth?

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