A company purchases a new filtration system by borrowing the $30,000 purchase price. The loan is to
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A company purchases a new filtration system by borrowing the $30,000 purchase price. The loan is to be repaid with 4 equal annual payments at an annual compound rate of 12%. It is anticipated that the system will be used for 9 years and then be sold for $2,000. Annual operating and maintenance expenses are estimated to be $9,000/year. A savings of $15,000/year is realized over the present system. The firm uses a MARR of 15% for its economic analyses.
Determine PW, AW and FW.
Related Book For
Engineering Economy
ISBN: 978-0132554909
15th edition
Authors: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
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