You are thinking of building a new machine that will save you $2000 in the first year.
Question:
You are thinking of building a new machine that will save you $2000 in the first year. The machine will then begin to wear out so that the savings decline at a rate of 4% per year forever. What is the present value of the savings if the interest rate is 3% per year?
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To calculate the present value of the savings from the new mac...View the full answer
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Aysha Ali
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