A large face-shovel is bought new for a price of GH¢23,250. It has an expected life of seven years when it is expected to have no salvage or resale value. Expenditure on maintenance, insurance, taxation, fuel and lubricants is expected to reach GH¢500 by the end of the first year, GH¢700 by the second, GH¢900 by the end of the third and so on increasing by GH¢200 each year. 

What is the Present value of owning this piece of equipment if interest is at 5%?

Answer rating: 100% (QA)

To calculate the present value of owning this piece of equipment we need to find the present value o... View the full answer