6. A piece of equipment costs $10,000 and will save $3,000 per year in costs for...

Transcribed Image Text:

6. A piece of equipment costs $10,000 and will save $3,000 per year in costs for the next 5 years. Using a hurdle rate of 10% compounded monthly, determine the present value of the cost savings. Is the initial $10,000 investment worth it? Explain your answer. 6. A piece of equipment costs $10,000 and will save $3,000 per year in costs for the next 5 years. Using a hurdle rate of 10% compounded monthly, determine the present value of the cost savings. Is the initial $10,000 investment worth it? Explain your answer.