Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are

Question:

Schaefer Organic Farms purchased a new tractor at a cost of $80,000. Annual operating cash inflows are expected to be $30,000 each year for four years. At the end of the tractor’s useful life, the of the tractor is expected to be $5,000.

Required
What is the if the is 12 percent (ignore income taxes)?

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