Question: Please solve it using interest tables 5-20 Luis is responsible for buying some specialized manufacturing equipment that has a purchase price of $10,000 and annual

Please solve it using interest tables

5-20 Luis is responsible for buying some specialized manufacturing equipment that has a purchase price of $10,000 and annual operating costs of $1000. The vendor is offering a special buyer incen- tive that provides free maintenance for the first four years. After that time, the maintenance is $500 per year over the 10-year life, and there is an overhaul expense in year 5 of $2000. The equipment has a salvage value of $1000. If the interest rate is 8%, what is the present value? Contributed by Gillian Nicholls, Southeast Missouri State University

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