Replacing old equipment at an immediate cost of $65 000 and $40 000 5 years from now

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Replacing old equipment at an immediate cost of $65 000 and $40 000 5 years from now will result in a savings of $8000 semi-annually for 10 years. At 14% compounded annually, should the old equipment be replaced?

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Contemporary Business Mathematics with Canadian Applications

ISBN: 978-0133052312

10th edition

Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs

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Question Posted: Feb 26, 2016 04:19 AM

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Replacing old equipment at an immediate cost of $65 000 and $40 000 5 years from now

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PV of savings PMT 8000 i 14 n 20 c 12 114 2 1 1067708 1 67708 PV n 8000 1 1067708 ...View the full answer

Contemporary Business Mathematics with Canadian Applications

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