Question: OPTION 2 - Replace the Equipment New equipment will cost $25,000 and is expected to have operating expenses of $1000 paid at the end of

OPTION 2 - Replace the Equipment New equipment
OPTION 2 - Replace the Equipment New equipment
OPTION 2 - Replace the Equipment New equipment will cost $25,000 and is expected to have operating expenses of $1000 paid at the end of each year over the next 10 years. Maintenance charges are expected to be $500 at the end of year 1 and will increase by $100 each year thereafter. This equipment can be resold after 10 years of use for $5000 and since it is being resold include maintenance for the last year. Now consider Option 2 of Question 1. What is the future value for Option 2? Question 6 What is ROI for Option 2? Express as a percent. Question 7 What is the rate of return for Option 2? Express as a percent

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